Positive opening seen for the markets

The outlook for the day is a positive opening, but sustaining the good start would be crucial, as we had seen in the overnight trade that the US markets had failed to hold on to a good start. The SGX Nifty suggests that the Nifty could open higher by 40 points at 10,491 at opening bell.  

ABB, ACC, BHEL, Bharat Forge, Cadila Healthcare, CESC, Dr Lal Path Labs, Glenmark Pharmaceuticals, Granules India, Manappuram Finance, Page Industries, Parag Milk, Petronet LNG, Reliance Capital, SAIL and Torrent Pharmaceuticals are some of the key companies to announce their results today.  

Asian stock markets lacked a clear direction on Thursday as the US markets finished near day's low on late selling. The 10-year US treasury yield continues to push back towards recent highs. The Japanese benchmark Nikkei 225 Index has added 43 points to 21,689 and Hong Kong’s benchmark Hang Seng Index has risen 187 points to 30,510, while China’s Shanghai Composite has shed 5 points to 3,304. 

Back home, frontline indices opened the session with handsome gains on the back of smart recovery seen in the US markets. However, what looked like the beginning of a wonderful Wednesday turned out to be a very volatile session as market gave up early morning gains and ended in the negative terrain. With this, Nifty posted seventh consecutive negative daily close. The outcome of RBI monetary policy was pretty much in line with our expectation as RBI maintained the status quo on interest rates. The broader indices showed resilience and outperformed the benchmark indices as Nifty Mid-cap and Nifty Small-cap surged 0.40% and 2.30%, respectively.  

The US stocks finished lower on Wednesday, unable to sustain a mid-day rally. The threat of rising inflation and a rise in yield of the benchmark 10-year treasury dampened the sentiments on the Wall Street. The Dow Jones Industrial Average dipped 20 points to close at 24,893, S&P 500 index ended down by 0.5% to finish at 2,681 and the Nasdaq Composite index slipped 0.9% to end at 7,051.  

Putting an end to the recent losing streak, the European markets clawed back to end the Wednesday’s session firmly in the green. The CAC 40 of France surged 1.82%, Germany’s DAX jumped 1.60% and the FTSE 100 of the UK gained 1.93%.