Markets set to open positive tracking strong global cues

Today, the start is likely to be in the green and the benchmarks may extend their upmove for the tenth straight session following strong close on Wall Street and positive cues from Asian peers. The SGX Nifty is pointing that Nifty may open 32 points higher at 10,586.50.    

A strong rally on Wall Street following upbeat quarterly earnings by large companies led Asian markets to higher ground on Wednesday. Japan’s benchmark index Nikkei 225 has rallied 269 points,  Hong Kong’s Hang Seng has gained 97 points and China’s Shanghai Composite has added 4 points. 

Back home, markets continued with their winning momentum and ended higher for a ninth straight session on Tuesday. During the first half of the trading session, markets traded in corrective to sideways mode, but then saw a V-shaped recovery in the second half of the trading session. Nifty gained 20 points to end at 10,549 and the BSE Sensex rose 90 points to close at 34,395. The broader indices ended with modest gains with Nifty Mid-cap and Small-cap Index adding 0.13% and 0.35%, respectively. Sector-wise, Nifty Realty and Nifty FMCG ended as top gainers.  

The US stocks closed in positive territory on Tuesday, with major indices closing at the highest levels in about a month. The strength on Wall Street was due to the positive earnings announced by a batch of large corporates. Netflix surged over 9% after the video streaming service company reported strong subscriber growth in the first quarter. The stock was the biggest percentage gainer in the S&P. Health insurer United Health also saw considerable strength after it raised its outlook and reported a sharp increase in profit. Market participants also reacted positively to a report from the US Commerce Department showing a rebound in housing in the month of March.  The Dow jumped 214 points to close at 24,786, the Nasdaq climbed 125 points to finish at 7,281 and the S&P 500 rose 29 points to end at 2,706.  

The European stock markets registered the best close in about seven weeks as the focus of investors has shifted from geopolitical concerns to the earning season. The DAX of Germany surged 1.57%, CAC 40 of France rose 0.76% and the FTSE 100 of UK added 0.39%.