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Markets to make positive start on Monday

Indian markets ended 1.5 percent lower on Friday mainly dragged by banking, financial and metal sectors. Today, the markets are likely to make positive start. Markets may continue to remain volatile during the week amid monthly derivatives expiry, quarterly earnings and the upcoming Union Budget. Traders will be taking encouragement with a private report that India’s economy showed signs a recovery is taking root as waning virus cases and a vaccine roll-out supported sentiment and as focus turns to further stimulus possible in the upcoming federal budget. Some support will come with report that foreign portfolio investors (FPI) remained net buyers to the tune of Rs 18,456 crore so far in January as global liquidity led to continued investment in emerging markets. Besides, after touching a record high in the preceding week, RBI data showed that the country's foreign exchange reserves declined by $1.839 billion to $584.242 billion in the week ended January 15. In the previous week ended January 8, the reserves had climbed by $758 million to touch a lifetime high of $586.082 billion. Traders may take note of report that India recorded 12,921 fresh cases of the coronavirus disease (Covid-19). The total number of active cases in the country has fallen to 186,115, while the caseload tally stands at 10,668,356. Globally, more than 99.7 million people have been infected by the virus. The country continues to be second-most-affected globally, and ranks 13th among worst-hit nations by active cases. NBFCs stocks will be in focus as the RBI proposed a structure to categorise NBFCs, or shadow banks, depending on their size and interconnectedness with the system. Continuing the recent flurry of initial public offerings, today the Rs 412 crore IPO of Stove Kraft Ltd will open for subscription. The kitchen appliance manufacturer is one of the leading brands in the segment. The issue is priced at Rs 384-385 per unit and investors can bid for a lot of 38 equity shares and in multiples thereafter. Meanwhile, Big farmers' rally today in Mumbai to protest against the Centre's new agriculture laws. Maharashtra farmers join to support the ongoing farmers' protest in Delhi. The farmers are protesting to demand repealing of three agri laws, central law guaranteeing MSP & procurement. Mumbai Police has beefed up the security at Azad Maidan.

The US markets ended lower on Friday. Asian markets are trading mixed on Monday as rising COVID-19 cases and doubts over the ability of vaccine makers to supply the promised doses on time soured risk appetite.

Back home, Friday turned out to be a disappointing day of trade for Indian equity benchmarks with frontline gauged ending with a cut of one and a half percent, breaching their crucial 48,900 (Sensex) and 14,400 (Nifty) levels. Markets started the session on cautious note on report that India recorded 13,701 fresh cases of the coronavirus disease (Covid-19). The total number of active cases in the country has fallen to 10,625,420, while the caseload tally stands at 10,625,420. Globally, more than 98 million people have been infected by the virus. The country continues to be second-most-affected globally, and ranks 13th among worst-hit nations by active cases. Traders shrugged off report that the Reserve Bank of India (RBI), in its latest assessment of the economy, indicated that the Indian economy has further recovered and estimates the Gross Domestic Product (GDP) to turn positive in the third quarter. Selling intensified in second half of the trade as traders opted to book profit mainly in Reliance Industries (RIL), Housing Development Finance Corporation (HDFC) and HDFC Bank. Sentiments remain dampened after credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has said that the major focus of the government to revive the COVID-19 battered economy has till now been on the supply side, but it is high time to change gears and focus on the demand side as well, lest the ongoing recovery begins to lose steam. Traders took note of report that India's hiring activities declined last year due to the coronavirus pandemic, there is a sudden increase in demand with about 53 per cent of companies saying they are planning to increase their headcounts in 2021. The pandemic adversely impacted economies across Asia-Pacific, including India, which had entered 2020 with robust hiring activities, according to professional recruitment services firm Michael Page India's 'Talent Trends 2021 Report'. Meanwhile, Union Health Ministry said the number of healthcare workers who have received COVID-19 vaccine jabs in India till the evening of the sixth day of the nationwide immunisation drive has reached 9,99,065 as per provisional reports. Finally, the BSE Sensex fell 746.22 points or 1.50% to 48,878.54, while the CNX Nifty was down by 218.45 points or 1.50% to 14,371.90.

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