With Mixed Global Cues Expect A Flat Opening For Indian Markets

The Indian equity markets yesterday witnessed a good up-move with the banking shares witnessing a good amount of traction.  Along with the banking stocks the Capital Goods and realty stocks also witnessed a good amount of up-move. If we take a look at the reasons behind the same it is clear that the capital goods took a cue from the excise duty cut being offered in the recent vote on account presented by the FM. Apart from that another reason was the December quarterly results season is over and with no negative surprise, it is considered as a positive news for the Indian equity markets. 

The moot question now is, whether this positive movement will continue or will there be good amount of resistance at higher levels. We are of the opinion that, rather than the domestic cues, the market Will more dependent on the global cues. So let’s see how the global markets are panning out.

The US markets remained quite range bound yesterday and closed with minimal losses. The Dow closed in red with a loss of 0.15%. The S&P however remained in green with marginal gains. Here we are of the opinion that, as the minutes of the FOMC would be released today. Though it is a known fact that the policy makers have decided to go ahead with the cut in bond buying, the minutes provide more detailed perspective. Hence ahead of the same, the markets remain range bound. The European markets remained in green with marginal gains as the macro data was positive.

While this is the story With US and Europe, it is the Asian markets that make more impact on the Indian equities. The Asian peers however are showing mixed signals. While the Nikkei is trading in red (Down around 0.50%), the other markets are trading with marginal gains. It was after the Bank of Japan stoked equity gains by maintaining its own asset-purchase program yesterday. The Shanghai index is trading flat and Hang Seng is up by 0.20%. As on the data front, as mentioned earlier the minutes of the FMOC are going to be released later in the day. Along with that Malaysia will posts inflation data. 

As for some news on the Indian markets, the P-Note investing in Indian markets stood at five month low at Rs 1.63 lakh crore. We feel it is a noticeable factor as this kind of money helps the Indian equities. However it is quite feeble and hence create a lot of volatility in the markets. Apart from that, a few of brokers have raised question on the numbers provided by the finance minister on the revenue side of the budget. 

As for the SGX nifty, it is trading in green with marginal gains of five points trading at 6142. With any major trigger on the domestic front, we expect the Indian markets to open on a flat note and remain range bound in the early hours of trade.