Positive start likely amid supportive global cues

The outlook is a positive start for the Indian markets as global cues are supportive. At the time of writing, SGX Nifty was up by 26 points at 11,752. Market participants will eye quarterly results of Bank of Baroda, Indusind Bank , Canara Bank, CIPLA and MOIL.

Majority of the Asian markets are trading with modest gains on Wednesday following strong close on the Wall Street after the US offered a temporary reprieve of restrictions on Chinese telecom giant Huawei. The Japanese stock index Nikkei 225 has advanced 0.37 per cent, Hong Kong’s Hang Seng has risen 0.35 per cent, while China’s Shanghai Composite index is trading flat with a positive bias.

Back home, Tuesday turned out to be a terrible day for equity benchmark indices with Nifty and BSE Sensex plunging around one per cent.  The equity benchmarks made an optimistic start and extended their morning gains. However, selling pressure emerged as the day progressed and the indices ended the day near the day’s low. The broader indices ended the session in the red as well, with Nifty Midcap and Smallcap losing 1.14 per cent and 0.89 per cent, respectively. Selling pressure was seen across the board as all the sectoral indices ended in the red, with Nifty Auto and Nifty Media emerging top losers.

The US stocks ended Tuesday session firmly in the positive territory. The upmove on the Wall Street came in as some trade restrictions on China’s telecom giant Huawei were eased. The Dow Jones Industrial Average surged 0.80 per cent, the S&P 500 rose 0.90 per cent and the Nasdaq Composite jumped 1.1 per cent.

The European stocks rallied on Tuesday as the US granted a temporary reprieve of restrictions on Chinese telecom giant Huawei. On the data front, the Eurozone consumer confidence improved in May. Germany’s benchmark DAX rose 0.85 per cent, France’s CAC 40 index added 0.50 per cent and UK’s FTSE ended higher by 0.25 per cent.