 "Pre-market: Firm start seen to Samvat 2072")
Markets are likely to start the customary 'Muhurat' trading session to usher in Samvat 2072, the Hindu new year, on a firm note after the government Tuesday eased regulations on foreign direct investment in key sectors.
"Markets may open on a positive note," Geojit BNP Paribas Financial Services said in a note today.
At 5:15PM, the SGX Nifty was up 11 points at 7,822
The government on Tuesday eased FDI regulations in 15 sectors with single-brand retail, private sector banking, construction, defence and broadcasting to benefit the most. The Department of Industrial Policy and Promotion also raised the cap for approval by the Foreign Investment Promotion Board to Rs 5,000 crore from Rs 3,000 crore earlier. Further,
the government also announced full fungibility with regards to private sector banking as foreign institutional investors and foreign portfolio investors can now invest upto 74% as long as no change in control.
Meanwhile, foreign institutional investors were net sellers in equities to the tune of Rs 662 crore on Tuesday, as per provisional stock exchange data. In November till date, FIIs were net sellers in equities worth Rs 430 crore. Foreign funds have been net sellers in May, June, August & September with August witnessing the highest outflows this calendar
year, at Rs 17,209 crore
GLOBAL MARKETS
Asian markets ended mixed with Japan and China closing with marginal gains. Japan's benchmark Nikkei ended up 0.1% while China's Shanghai Composite ended 0.3% higher. However, Hong Kong's Hang Seng ended down 0.2% weighed down by oil shares amid weak global crude oil prices while Straits Times ended down 0.5%.
European shares were trading higher amid encouraging earnings with beverage major Carlsberg gaining the most. Among the major indices, DAX was up 0.9%, CAC-40 and FTSE-100 were up over0.5% each.
Stocks to watch
In the real estate sector, DLF, Unitech, IndiaBulls Real Estate, Oberoi Realty, Godrej Properties could perk after restrictions were removed on floor area, capitalisation in addition to 100% FDI under automatic route for townships, mall and business centres.
Among private sector banks, Axis Bank, Yes Bank and Kotak Mahindra Bank aswill see some action after full fungibility for foreign investment in banking.
Companies that manufacture defence products such as Mahindra & Mahindra, L&T, Pipavav Defence and Astra Microwave Products are likely to gain on foreign investment up to 49% under automatic route.
Direct-to-home companies such as Dish TV and Videocon Industries and cable companies such as Hathway Cable & Datacom are likely to gain on 100% FDI with up to 49% under the automatic route and over 49% under the approval route.
GMR Infrastructure and GVK Power & Infrastructure which own and manage airport infrastructure in major metros may see some action after FDI in ground handling/non-scheduled air transport was increased to 100% from 74%.
InterGlobe Aviation the operator of the country's largest airline Indigo which made its debut on Tuesday may extend gains but profit taking at higher levels may cap further upside in the near term.
Auto shares are likely to extend gains on robust growth in October with passenger and utility vehicle segments growing over 20.8-21.8% while two-wheeler segment grew 13.3% compared to October 2014.
Tata Motors may gain after the company reported that its global sales, including Jaguar Land Rover were up 13% at 92,949 units in October 2015 compared to 82,026 units in October 2014.
