VantageTrade Eagle Eye: Sentiment on the markets remains bullish ahead of inflation data and Union Budget

Due to an unexpected cut in CRR rate we could observe gap up opening on markets yesterday. However, because investors were booking profits, the markets did not manage to sustain the gains.

The India’s Industrial Output data were ahead of expectations what diminished hopes for a rate cut in the upcoming RBI’s policy meeting. January IIP is 6.8% versus market expectation of 2.2%, pulled up largely by food products and consumer non-durable goods. Capital goods and durables continue to decline.

Nifty ended up 26 points on Monday, to close at 5359.55. Sensex ended up 84.43 points, at 17,587.67.

US markets finished nearly untouched because of concerns about China’s slowing economy. The Dow Jones industrial average gained 37.69 points, or 0.29%, to 12,959.71. The Standard & Poor's 500 Index rose 0.22 points, or 0.02%, to 1,371.09. The Nasdaq Composite Index dropped 4.68 points, or 0.16%, to 2,983.66.

Asian shares started positive today, Japan’s Nikkei 225 index was trading 1.1% higher at 10,002.62 and Hong Kong’s Hang Seng index was trading higher at 21,352.12, up 1.01%. South Korea’s Kospi index was trading 1.1% higher at 2025.45. China's Shanghai index was trading at 2432, down 0.1%.

Also Indian benchmarks started the session in Green.  Nifty opened at 5,391.05, 31.5 points higher and Sensex opened 92.56 points up, starting at 17,680.23.

Investors will keep a close eye on Kingfisher Airlines after the company said it had to cancel some flights due to "employee agitation on account of delayed salaries". Also, Natco Pharma will be in public interest after the company was granted a license to sell Bayer-patented cancer drug Nexavar.

 

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