Morning Bell.....key Indian equity benchmarks have gained modestly in early minutes of trade after a really slow start

Indian Markets

The key Indian equity benchmarks have gained modestly in early minutes of trade after a really slow start. The NSE Nifty remains above the psychological level of 5400 while the BSE Sensex is trading above 17,800. the BSE Sensex was 17,875, up 44 points over the previous close. It had earlier touched a day’s high of 17,881 and aday’s low of 17,798. It opened at 17,817.

Tata Power is trading firm ahead of its Q3 FY12 earnings while DLF is under some pressure before its results. Tata Steel has gained after its Q3 results but Hindalco is in the red. RCOM is up before its Q3 earnings. ACC has advanced after posting strong quarterly profits. L&T, Bajaj Auto, Grasim, SAIL, Sesa Goa and BPCL are among the top leaders so far.

December IIP print is seen between 2.5% and 3.5%. This is slower than November’s reading of 5.9%. However, the markets may not get swayed much as the IIP data generally has been quite erratic.

Global Markets

The undertone has been buttressed by news that Greek leaders have reached an agreement on new budget cuts that are needed to get more international money and avoid a debt default. However, the eurozone finance ministers are yet to clear the new bailout funds pending an approval of the austerity measures by the Greek parliament.

Meanwhile, the US Labor Department’s count of Americans filing initial claims for jobless benefits dropped by 15,000 last week to 358,000. The four-week moving average fell to 366,250, its lowest since April 2008.

China’s exports fell for the first time in more than two years in January as trade was disrupted by the weeklong Chinese New Year holiday. The overseas demand was also hit by Europe’s prolonged debt crisis.China's exports declined 0.5% from a year earlier, the customs bureau said today. Imports dropped by a more-than-forecast 15.3%, leaving a trade surplus of US$27.3bn.

Globally, equities have got off to a strong start in 2012. So, don’t be surprised if market players turn a little hesitant in pushing stocks much higher.

Major Results Today:

Apollo Hospitals, Aurobindo Pharma, BPCL, Britannia, DLF, Eros International, Gammon Infra, GE Shipping, Hathway Cable, Hotel Leela, IDFC, JSW Steel, Lovable Lingerie, MMTC, MTNL, Neyveli Lignite, Pantaloon Retail, Pipavav Defence, Reliance Capital, RCOM, Shriram Transport, Sun TV, Tata Chemicals and Tata Power.

Outlook

Today, the Indian Markets could open lower following negative Asian cues, but could make an attempt to inch up later during the day. A move above 5,420 on the Nifty could result in further upside. Meanwhile, 5330 level remains a strong support. Among the sectoral indices, Banks, Auto & Consumer Durables continue to look good, while FMCG & Healthcare could relatively underperform.

Sources-IIFL,Hdfcsec