Sensex, Nifty open in green; SBI, ITC, TCS gain 1%

 SBI, ITC, TCS, Tata Motors and ONGC are top gainers while Relaince, Hero MotoCorp, Tata Steel, Lupin and M&M are losers in the Sensex.  Though headwinds such as policies of the Donald Trump government in the US exist, Andrew Holland, CEO of Avendus Capital is optimistic on the global scenario. Holland said India continues to shine in the long-term. The only negative in short-term is earnings, which are unlikely to grow much this quarter, but won’t be a disaster either. Guidance of 15-20 percent earnings growth still needs to be revised down. "Valuations still are not compelling enough to jump into the market,” Holland added.  In the upcoming Budget, he expects government to increase fund allocation to the infrastructure sector.  

Raghruram Rajan's interview: The attitude of the Trump administration on trade has the potential of playing a spoiler, says former RBI Governor Raghuram Rajan. Speaking to CNBC he raised concern over the protectionist policies proposed by US President-elect Donald Trump and said there is a significant risk of a trade war between US and China. He said we are in the process of a global recovery, but the major question is how it fares once interest rates move up and currencies become more volatile as the US dollar strengthens. "We do need to weather the asset-price volatility that will come as interest rates move up but this is necessary," he said. In the last 3 months purchases by domestic mutual funds have more than offset foreign institutional investor outflows.

 It is tempting to assume that persistent domestic inflows into the equity market are likely to keep the market strong, Neelkanth Mishra of Credit Suisse says. However, analysis of past market trends suggests that flows only temporarily impact prices, he feels. Instead, changes to earnings estimates have a stronger influence, and on those we remain cautious, Mishra says.  Buy, sell, hold: 5 key largecap stocks to watch out today The market has opened in green Tuesday. The Sensex is up 51.43 points or 0.2 percent at 27339.60 and the Nifty is up 16.10 points or 0.2 percent at 8428.90. About 689 shares have advanced, 192 shares declined, and 174 shares are unchanged. SBI, ITC, TCS, Tata Motors and ONGC are top gainers while Relaince, Hero MotoCorp, Tata Steel, Lupin and M&M are losers in the Sensex. The Indian rupee opened flat at 68.09 per dollar on Tuesday against previous close 68.10. The pound remained weak ahead of British Prime Minister Theresa May's speech on brexit plans due later today. The dollar strengthened against a basket of currencies. Global investors are awaiting UK PM Theresa May's Brexit speech. According to reports, May will lay out plan to exit the European Union that would see Britain lose access to the bloc's single market. The pound is already near 3-month low ahead of the speech. 

The pound's losses helped take some pressure away from the greenback, which has been burdened by investor uncertainty over the incoming Trump administration's policies. Asian markets saw a mixed start as investors were cautious ahead of May’s speech. Nikkei was down nearly half a percent, while the Korean market was trading higher by over half a percent. The International Monetary Fund (IMF) slashed India's growth forecast by as much as a percent. It revised its expectations to 6.6 percent versus the 7.1 forecast by the government, citing demonetisation. Among other asset classes, crude prices were trade steady as Saudi Arabia's commitments to reducing production offset a report forecasting US output would again rise this year. Gold continues to hold above 1200 dollars an ounce on Trump uncertainty and Brexit concerns

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