Positive opening likely following strong global cues

Indian markets look set to open on a firm note on Thursday following strong global cues and as the FOMC statement was deemed to be fully dovish on the US monetary policy. However, as the day progresses, volatility too is likely to remain ingrained in the session on account of January F&O expiry. The SGX Nifty indicates Nifty is likely to open with a gain of 67 points above the 10,700 mark. Bharti Airtel, Chambal Fertilizers, Dabur, Hero Motocorp, Indiabulls Housing Finance, NMDC, Power Grid, Petronet, UPL, VGuard will declare their results today. 
  
The markets in Asia are cheerful on Thursday following overnight gains on the Wall Street after the US Fed left interest rates unchanged and added that the committee will be patient with regard to future interest rate hikes. Japan’s Nikkei 225 Index has advanced 0.90 per cent, Hong Kong’s index Hang Seng has edged higher by 0.86 per cent and China’s Shanghai Composite Index has rose 0.55 per cent. 
  
Back home, key benchmark indices witnessed yet another volatile trading session as the indices fluctuated both ways before ending on a flat note. The BSE Sensex and Nifty closed almost unchanged at 35,591 and 10,652. The broader markets outperformed the benchmarks as Nifty Mid-cap and Small-cap ended with healthy gains of 0.51 per cent and 0.58 per cent, respectively. On the sectoral front, Nifty PSU Bank, Nifty Metal and Nifty Media ended as top gainers, while Nifty FMCG ended as the top loser. 
  
The US stocks ended Wednesday’s session firmly in the positive territory on the back of better-than-expected earnings from iPhone maker Apple and Boeing, followed by Federal Reserve’s monetary policy announcement where it left interest rates unchanged and indicated that it will remain patient regarding further rate hikes. Meanwhile, market participants shrugged off mixed economic data showing ADP employment reports topping the forecast but an unexpected decrease in pending home sales. The Dow Jones Industrial Average climbed 1.77 per cent, the S&P 500 Index surged 1.55 per cent and the Nasdaq Composite jumped 2.20 per cent. 
  
European markets ended mostly in the green on Wednesday. In the economic news, Eurozone economic sentiment fell in January to a two-year low, French consumer spending fell more than anticipated but the nation’s fourth quarter GDP growth was better than expected and the German consumer price inflation declined. The DAX of Germany slipped 0.33 per cent, while the CAC of France soared 0.95 per cent and the FTSE 100 of the UK gained 1.58 per cent.