Bullish tone to continue today!

With the gains posted in the last two trading sessions, markets returned to almost pre-Budget level, helped by buying across the board as nerves calmed down after the knee-jerk reaction of the Budget announcements. Moreover, the global landscape which appeared bleak has been stabilising as the measures deployed by China to contain the spread and economic fallout from the outbreak of the virus quell some nervous investors a bit. SGX Nifty is signaling a flat start to the day as it’s down by 17 points and trading at 11,955 levels. This is due to Moody’s Investors Service which stated that the economic growth projection made by Finance Minister Nirmala Sitharaman in her Budget for 2020-2021 appear ambitious, given the structural and cyclical challenges of the Indian economy, as reported by PTI. We expect that the market is likely to continue with its upward momentum despite a flat opening. For the day, the market participants would track Services such as PMI for the month of January which is scheduled to release later in the day along with this quarter ended December 31, 2019 earnings.   

Majority of the Asian markets were trending higher on Wednesday after a strong close overnight on Wall Street aided by better than expected economic data. Japan’s Nikkei 225 was up by 1.05 per cent and Hong Kong’s Hang Seng added 0.58 per cent. Meanwhile, China’s Shanghai Composite was almost unchanged.

Back home, the markets witnessed a scintillating rally on Tuesday led by positive global cues and declining oil prices. The markets started off the session with a gap-up and throughout the day, it remained in upward trajectory and closed near the day’s high. Nifty jumped 2.32 per cent to close at 11,980 and BSE Sensex climbed 2.30 per cent to finish at 40,789. India Vix, the volatility index, crushed 9.20 per cent to 14.38 mark. In the broader markets-Nifty Mid-cap and Small-cap ended the day with gains of 1.14 and 1.89 per cent, respectively thereby, underperforming frontline gauges. All the sectoral indices ended in green. Nifty Metal, Nifty Financial Services and Nifty Realty were the top gainers.

Cheerful Days were back on Wall Street. On Tuesday, US stocks extended their gains and with this upmove, the tech-heavy Nasdaq scaled to a new record closing high. The rally on Wall Street was seen on the back of reports, where the People’s Bank of China would take appropriate steps to combat any possible economic fallout from the outbreak of the coronavirus in mainland China, which has already resulted in the death of more than 300 individuals. Dow rallied 1.4 per cent, S&P 500 advanced 1.5 per cent and Nasdaq surged 2.1 per cent. In the economic news, factory orders top forecasts. European markets too ended on a firm note aided by recovery seen in the Chinese markets and bargain hunting.