US Fiscal cliff may keep Indian Markets subdued - Consortium

The frontline Indian stock indices gained modestly on Friday, capping a volatile holiday-shortened week on a positive note, thanks in part to sustained gains in index bellwether RIL. The positive trend in the Indian market today mirrored the gains in other Asian markets, notwithstanding lingering worries over the US fiscal problems. The Indian market is looking forward to 2013 with a lot of hope after a fantastic 2012.

Latest quarterly earnings and the RBI policy meeting will be the main events in January, apart from the US fiscal cliff development(s). The BSE Sensex was up 0.63% while the NSE Nifty lost 0.65%.The broader indices ended higher. The BSE Mid-Cap Index was up 0.80% and the BSE Small-Cap index advanced 0.30%.The BSE Oil & Gas index was the top gainer 2.40%, led by strength in RIL. The BSE IT index gained 1.20%. The BSE PSU, Teck and Consumer Durables indices were the other noteworthy winners. The BSE Pharma index ended lower while the Banking index was flat. In terms of index constituents, RIL, ONGC, Sterlite Industries, Infosys, Hero MotoCorp., Wipro, TCS, Gail, Maruti, Hindalco and BPCL were the biggest gainers in the Sensex and Nifty today. There were no major losers today in the two key indices.

For the day coming Indian markets are expected to open on subdued note given the weak global cues. Asian shares in early trades opened lower on Monday, with uncertainty over U.S. budget negotiations weighing on stocks on the last trading day of the year.

Markets in Japan, South Korea and Taiwan are closed for a public holiday. U.S. shares took a beating on Friday, closing for a fifth-straight session as skepticism grew that lawmakers would reach a deal to avoid the "fiscal cliff." Technically Indian markets are trading in a 5960 - 5840 range and are expected to remain in this range unless some positive overseas or domestic triggers are unleashed. FIIs flows continue to remain robust indicating strong appetite from foreign investors. We still hope for early resolution to US fiscal cliff. Though markets may remain under pressure in early trading, but buying could emerge in latter part of the trading session.

Source : Equity Bulls

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