Negative opening likely amid disappointing macro data & negative global cues

The benchmark indices have trended higher for the second day in a row on Tuesday, but will the bulls be able to close the indices in the green and perform a hat trick on Wednesday? However, the global cues and disappointing macro data released post market hours yesterday suggest that the bulls may face a hard time at the opening bell. Global sentiments turned sour after UK lawmakers rejected Theresa May’s deal for a second time, while on the domestic front, IIP growth slowed to 1.7 per cent in the month of January and CPI inflation moved higher to 2.57 per cent for February. At the time of writing, the SGX Nifty indicated that Nifty may open marginally lower by 13 points around 11,319.

Stock indices in the Asian region are trading in the negative terrain following a mixed close on the Wall Street and rejection of British’s Prime Minister Theresa May’s EU withdrawal deal by the MPs by an overwhelming majority for the second time. The Japanese stock market Nikkei has shed 1.26 per cent, Hong Kong’s Hang Seng index was down 0.50 per cent and China’s Shanghai Composite index has lost 0.35 per cent.

Back home, bulls were on steroid on Tuesday as they continued their dominance for the second straight day. Both the equity indices, the BSE Sensex and the Nifty gained over a per cent. Key indices made a fabulous start and there was no looking back. The sentiments remained upbeat on the D-Street amid sharp FPI inflows and a strong rupee as Indian rupee has strengthened 18 bps on Tuesday to close at 69.71/$. Among the broader market indices, Nifty Midcap rose 0.46 per cent, while Nifty Smallcap jumped over a per cent. Barring IT and PSU Bank, all other sectoral indices ended in the green on the NSE, with Realty and Media emerging as top gainers.

On the Wall Street, majority of the indices ended Tuesday’s session in the green. The S&P 500 and Nasdaq added 0.30 per cent and 0.44 per cent, respectively, while the Dow dipped by 0.38 per cent as it was dragged down by another poor price performance from Boeing. The stock price of the Boeing tumbled over 6 per cent as several world governments decided to ground the company’s 737 MAX jet following the second deadly crash. Meanwhile, consumer price inflation matched economists’ estimates.

The European stock indices finished mixed on Tuesday ahead of the British members of parliament voting down Prime Minister Theresa May’s revised Brexit proposal for the second time in two months. The DAX of Germany was down by 0.17 per cent, while the CAC 40 added 0.08 per cent and the FTSE 100 of the UK gained 0.29 per cent.