Indian Market
The BSE Sensex was 17,678, up 56 points over the previous close. It had earlier touched a day’s high of 17,689 and a day’s low of 17,631. It opened at 17,631.
NSE Nifty was quoting 5,353, up 18 points over the previous close.It has earlier touched a day’s high of 5,354 and a day’s low of 5,335. It opened at 5,343.
The culprit for Tuesday's insipid session was the advance GDP estimate for FY12. It shows less than 7% growth for the first time in three years. Hopefully, the final reading will be a little higher.
The Indian economy has lost steam and the Government needs to act now to give it a fillip. The upcoming Budget will be crucial in this context. But, before that the market will have to grapple with state elections. A favourable result for the UPA will be seen as a positive. On the flip side, the undertone might be hit in case of an adverse outcome for the Congress.
Global Markets
Asian markets are mostly up while the US and Europe stocks pared losses overnight. Reports point to some progress in talks to save Greece from a default.
Leaders of the three political parties that back Prime Minister Papademos's interim unity government are set to meet the premier in an effort to finalize details of the program.However, the meeting was postponed until Wednesday, according to media reports.
Separate news reports indicated that Greek government officials were drafting a final agreement on budget cuts to be presented to political leaders. The agreement on fresh austerity measures is seen as necessary to avoid a disorderly default.
Also, Federal Reserve chief Ben S. Bernanke has reiterated his readiness for more stimulus if the need arises. But, one must remain on guard after a sharp and swift rally.
Currencies
The US Dollar rose against the Indian Rupee by 0.3% to Rs.49.2 on Tuesday as oil importers' demand for the greenback and a negative local share market offset comfort from dollar inflows. Outlook on the local currency is turning increasingly uncertain due to continuing concerns over Greece's debt problems, and the political logjam that continues to hem in local reforms as well as the persistently high inflation.
Commodities
Oil gained a second day in New York after an industry report showed crude stockpiles shrank in the U.S., the world’s biggest consumer of the commodity.
Outlook
Today, we expect the Indian Markets to open in the green following positive global cues and trade in a range with positive bias. Immediate resistance for Nifty is at 5389, while support is at 5300. Among the sectoral indices, Banks and Oil Gas look good. After correcting yesterday, Capital Goods & Realty could also bounce back today. However, FMCG index could underperform.
Source-hdfcsec, IIFL
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