INDIAN EQUITY MARKET OUTLOOK -13 JAN 2016

INDIAN BENCHMARKS are likely to witness positive opening as the global cues look supportive with SGX Nifty trading 36 points higher. The key domestic equity benchmarks are likely remain cautious on Wednesday as investors might react to a surprise factory contraction and a surge in inflation in Asia’s third biggest economy, souring the lure for risky assets. India’s industrial output plunged to over a four-year low, contracting a massive 3.2 per cent in November 2015 from the same month a year ago as manufacturing production shrank 4.4 per cent, signaling a slowdown in the country’s economy. Meanwhile, consumer inflation spiked to a 15-month high of 5.61 per cent in December 2015 from 5.41 per cent in November 2015, dashing hopes of a near-term interest rate cut by the RBI.

Headlines for the day:

Ultratech may buy a controlling stake in ARM Cement of Kenya.

Orange acquires Bharti’s  operations in Burkino Faso & Sierra Leone.

SBI to monetise non-core assets over next 3 years.

Global Indices:

Asian stocks rebounded from a three-year low today as a surprise rise in China’s exports eased concerns over a slowdown in the world’s second biggest economy.

China’s Shanghai Composite surged over 1 per cent while Hang Seng advanced over 2.2 per cent after data showed that China’s exports rose 2.3 per cent, year on year, in Yuan terms in December 2015, following an annual 3.7 per cent dip in November 2015.

Japan’s Nikkei 225 surged over 2.6 per cent, rising for the first time this year tracking overnight gains at Wall Street amidst speculation that the China induced global mayhem may have been overdone.

US job openings rose in November and small business confidence climbed last month, signaling strength in the world’s biggest economy, supporting a rally in US equities. The Dow Jones Industrial Average surged 0.72 per cent; the Nasdaq Composite advanced 1.03 per cent while S&P 500 rose 0.78 per cent.

Trend in FII flows:  

The FIIs were net  sellers of  Rs -540.99 Cr in the cash segment on Tuesday while the DIIs were net buyers of  Rs 141.25 Cr, as per the provisional figures released by the NSE.

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