Indian Markets settle on an optimistic note - Microsec

Indian markets settled on an optimistic note on the back of supportive global markets, consistent FII flows and in-line / betterthan-expected quarterly results. IIP figures came in line with expectations.

On domestic front, India's Industrial Production grew by 2.5 percent YoY during March 2013 vis-a-vis a revised 0.5 percent YoY growth registered in February 2013. However, this recovery was not broad based and was largely due to strong growth in the Manufacturing sector. Among use based sectors, volatile Capital Goods supported the IIP number, even as Consumer Durables and Intermediate Goods continued to post weak numbers.

India's HSBC Services Purchasing Managers' Index (PMI) grew at its slowest pace in one-and-a-half years in April 2013. PMI stood at 50.7 during the month compared with 51.4 in March 2013.

On global front, The U.S. Initial Jobless Claims decreased by 4,000 to 323,000 in the week ended May 4, 2013 - the fewest since January 2008.

The U.S. posted its widest Budget Surplus in five years in April 2013. The Surplus increased to USD 112.9 billion, the biggest since April 2008, from USD59.1 billion a year earlier.

The Chinese Trade Surplus increased to USD 18.2 billion in April 2013 from a drop of USD 0.88 billion in the previous month. Exports rose 14.7 percent YoY to USD 187.1 billion in and Imports increased 16.8 percent YoY to USD168.9 billion during the month.

The Bank of England maintained its stimulus program and kept its key interest rate at 0.5 percent in its policy meeting. The bank reaffirmed its stimulus programme of quantitative easing (QE) to buy 375 billion pounds (USD 584 billion) of debt.

Source : Equity Bulls

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