Markets likely to rally further despite mixed cues from Asian peers

Indian markets are expected to extend their jubilant run, shrugging of mixed cues from the Asian peers. The SGX Nifty indicates that Nifty could open around the level of 10,867, with a gain of 58 points.    

Majority of Asian markets have edged up as Wall Street extended a comeback rally overnight. Hong Kong’s Hang Seng and China’s Shanghai Composite indices have gained 0.05 and 0.80 per cent, respectively. while Japanese stock market has dipped 0.67 per cent as Japan’s factory output fell indicating rising pressure on the economy.

Back home, benchmark indices started off the session on an optimistic note and traded mostly in a narrow range with positive bias for the second half of the trading session. At the end, Nifty added 0.47 per cent to end above the 10,750 mark and Sensex closed higher by 0.44 per cent to end above the 35,800 mark. The broader indices underperformed the frontline benchmarks, with the Nifty Mid-cap and Small-cap adding 0.33 and 0.23 per cent, respectively. On the sectoral front, Nifty Realty plunged the most, while Nifty Media gained the most.    

The US stocks witnessed considerable weakness throughout much of the trading day on Thursday before staging a substantial recovery late in the session. On Wednesday, Wall Street posted its largest single-day gain in history, but on Thursday, profit-booking dragged the market lower early in the day. However, Wall Street ended the volatile session in the green. The Dow Jones Industrial Average jumped 1.14 per cent; the S&P 500 gained 0.86 per cent and the tech-heavy Nasdaq rose about 0.38 per cent.   

The European markets tumbled after the holiday break. After a positive start to the day, the markets steadily declined throughout the session. The DAX of Germany weakened 2.37 per cent, the CAC of France fell 0.60 per cent and UK’s FTSE 100 lost 1.52 per cent.