Continued positive momentum to be seen in markets

The Indian markets are likely to carry a positive baton from the previous trading sessions. Nifty, which closed at a record closing high in the previous trading, will now aim for the next milestone of 12,400 and helping the cause is positive global cues. SGX Nifty indicates that the benchmark index may open around 12,378 mark, up by 21 points. However, the markets have to deal with inflationary monster - the ogre of inflation is reading its head yet again. The consumer price index (CPI) jumped to a 5-year high of 7.35 per cent, driven by a double-digit surge in food inflation. The hopes of a rate cut in the ensuing RBI meet have been dashed as inflationary pressures are creating a strain once again. On the earning front, IndusInd Bank, Mindtree, and Wipro are likely to be in focus.

The Asian markets were seen advancing on Tuesday, following a strong close on Wall Street and a report, stating that Washington has said that Beijing was no longer a currency manipulator. The Nikkei in Japan is up more than half a per cent while China’s Shanghai Composite and Hong Kong’s Hang Seng are trading with a respective rise of 0.21 and 0.19 per cent above their yesterday’s close.

Back home, the bulls hit a hat-trick of gains as the markets edged higher for the third successive day in a row on Monday. The day started on a cheerful note on the back of supportive global cues and IT bellwether, Infosys, kicking off the earnings season. These factors contributed to positive sentiments. At the end of the day, both the key benchmark indices ended at record closing high. Amongst the broader markets, Nifty Midcap and Smallcap rose 0.81 and 0.97 per cent, respectively. All the sectoral indices ended in the green, with Nifty Realty and Nifty IT becoming the top gainers. 

In overnight developments, the US markets kicked off the week on a positive note, as market participants were feeling upbeat, owing to the expectation that the US and China will sign the 'phase one' trade deal on January 15. Further, a report indicated that the US is likely to take China off of the 'currency manipulator' list that it instilled on the nation five month ago. At the close of the session on Monday, NASDAQ and the S&P 500 ended the session at new record closing highs and the Dow rose 83 points to 28,907. Meanwhile, the European markets ended mixed.