Markets set to open on a positive note following strong global cues

The optimism in the global markets and the encouraging macroeconomic data which were released post market yesterday will provide a perfect set-up for the bulls and makes us believe that the benchmark indices are all set to open in the positive terrain. The CPI inflation for the month of January 2019 came in sharply lower at 2.05 per cent and the IIP growth for December 2018 was subdued at 2.4 per cent, but it was better than the estimates  The SGX Nifty suggests that Nifty may open around 10,892, up by 30 points. 
  
The Asian markets were seen advancing on Wednesday on the back of strong rally on the Wall Street overnight. Japan’s Nikkei 225 has gained 1.54 per cent, Hong Kong’s stock index Hang Seng has risen 0.44 per cent and China’s Shanghai Composite index has edged up 0.42 per cent. 
  
Back home, the bears continued to dominate as the equity benchmark indices extended their southward journey on Tuesday. The indices began the session on a tepid note, but thereafter the markets remained volatile and swung both ways. But it was only in the last hour of the day when the indices lost ground with the BSE Sensex shedding 0.66 per cent and Nifty losing 0.53 per cent. The broader indices ended on a mixed note as Nifty Mid-cap added 0.05 per cent while Nifty Small-cap edged lower by 0.33 per cent. Among sectoral indices, Nifty Metal, Nifty Media and Nifty Pharma witnessed buying interest, while all other sectoral indices ended lower with Nifty PSU Banks being the top loser. 
  
The US stock markets ended Tuesday’s session firmly in the positive terrain as lawmakers in Washington reached a tentative deal to avoid another government shutdown. Also, the optimism over the potential for a trade deal between the US and China lifted the sentiments. The Dow Jones surged 1.49 per cent, Nasdaq jumped 1.46 per cent and S&P 500 climbed 1.29 per cent, respectively. 
  
The European equities marched higher on Tuesday and ended the day with solid gains amid easing fears about another US government shutdown and as the hope increased about the possibility of a trade deal between the US and China. On the Brexit front, UK Prime Minister Theresa May told lawmakers that she needed more time to negotiate a deal acceptable to both the European Union and the British parliament. The DAX of Germany advanced 1.01 per cent, the CAC 40 of France added 0.84 per cent and the FTSE 100 of the UK ended up by 0.06 per cent.