Markets Likely To Shun Losing streak - Open On Positive Note

Indian equity markets are likely to end its losing streak that it has been witnessing since last six trading sessions. The decline was more on account of global issue than the domestic issues. However the things seem to have stabilized on the similar front. While the European markets closed on the positive note with FTSE closing with 0.58 % gains and DAX closing up by 0.35%. Even The CAC index was up by almost 1 per cent. The basic reason behind the up-move in the indices was the slowest decline in the PMI. The Bloomberg data suggested that this has been the slowest PMI decline in the past 10 months. As a results most of the European stocks gained after witnessing a fall on Monday on account of rising bond yields in Euro zone.

Even the US equity markets closed on positive zone where the Dow was up by 0.71% and S&P was up by more than 1%. Better than expected financial performance of Most of the companies for the December 2012 quarter is the primary reason behind the same. The Bloomberg data suggests that, about 75 percent of the 279 companies from the gauge that have released results since Jan. 8 have exceeded profit projections, and 66 percent have beaten sales estimates. Amid all this, Toyota, the world’s largest carmaker, raised its profit forecast to a five-year high and Disney, the biggest entertainment company, posted first- quarter earnings that beat analyst estimates. This clearly indicates towards the optimism in the markets. Taking the cues from these markets, most of the Asian Markets have also opened on a positive note.  While Nikkei is up by 2.94%, Hang Seng is also up by 0.52%. Shanghai Composite is down marginally. However one may expect some amount of recovery happening in Shanghai, as the inflation and exports figures are announced for the Month of January.

As regards the Indian markets the SGX nifty is trading on a positive note. The SGX nifty is up by 14 points trading at 5981. Further the government has announced the NTPC offer for sale to happen on 7th February 2013. It is a positive development as government is moving ahead in the direction of raising funds through divestment. Considering all these factors we, expect a positive opening for the Indian markets.