 "Favourable macrodata, good monsoon forecast to boost markets")
Markets may witness a firm start on favourable macroeconomic parameters and above normal monsoon forecast. Also, strength among the global peers amid rally in commodity and crude oil prices and mixed bag of earning results in Europe and US are likely to aid sentiment.
MACROECONOMIC DATA
Retail inflation measured by the Consumer Price Index (CPI) eased to a six-month low of 4.83% in March from 5.26% in February. Also, the industrial output in the country rose by 2% in February after falling continuously for three consecutive months, government data showed on Tuesday.
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ALSO READ: March CPI eases to six-month low of 4.83%; Feb IIP rebounds to 2%
MONSOON
The monsoon in 2016 will be normal or in excess, the meteorological department or IMD forecast today, bringing relief to the 10 states that are suffering from the worst drought in decades. Rains in 2016 would be between 104 and 110 per cent of the long-term average.
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GLOBAL MARKETS
Asian equities are gaining across the board after strong Chinese trade data raised hopes that the economy is stabilizing. Also, rally in commodity and crude oil prices lifted the mood.
China reported exports rose 18.7% in yuan terms in March, compared to a year earlier, while imports dipped only a slight 1.7%. That was a huge improvement for the month of February as usually the data at this time of year tends to be distorted by the new year holidays.
Brent crude oil prices hit a four-month high on Tuesday after reports of an agreement among two major producers to freeze output, boosting energy stocks, even as the US dollar was having its strongest session in three weeks.
CORPORATE NEWS
Shares of monsoon linked sectors including two-wheelers, tractors and agrochemicals are likely to see an uptick after the weather office has forecast surplus, well-distributed monsoon rainfall this year after two consecutive droughts.
The board of directors of Wipro will consider a proposal to buy back shares of the company on April 20, the day the company announces its March quarter results.
Bajaj Corp reported a marginal decline in standalone net profit at Rs 54.02 crore for the fourth quarter ended March 31.
Tata Steel UK Ltd's signing of an agreement to sell its European long products business to UK-based investment firm Greybull Capital is credit positive for its parent, Tata Steel, according to Moody's Investor Service.
Jewellery stocks are likely to remain in focus. After keeping shutters down for 43 days against the proposed 1% excise duty on non-silver jewellery, bullion traders and jewellers opened their shops on Tuesday.
The Mukesh Ambani-promoted Reliance Industries on Tuesday floated an Expression of Interest (EoI) to develop its oil and gas blocks, including some of the discoveries in the KG-D6 block off the coast of Andhra Pradesh.
Axis Bank became the first bank to reduce its key lending rate after the Reserve Bank of India (RBI) reduced its repo rate by 25 basis points last week.