Positive start likely following favourable global cues

The outlook for the day is a positive start as the SGX Nifty at the time of writing is seen trading higher by 57 points at 10,671 and we are of the opinion that Nifty, after scoring a half century in the opening bell, would gun for a tonne during the day if the global cues continue to remain favourable. Market participants will also keep an eye on the GST Council meeting which will be held today. 

Majority of the Asian markets are trading higher on Wednesday after the US President Donald Trump stated that the March deadline for a US trade deal with China is not a ‘magical date’. This indicates that the negotiating period could be extended. Hong Kong’s stock index Hang Seng has surged 1.30 per cent, Japan’s Nikkei 225 has soared 0.70 per cent, while China’s Shanghai Composite index is hovering around the break-even line. 
  
Back home, key benchmark indices had a decent start to the day and after a consolidation. The indices gained momentum and the bulls were seen in full charge, however, in the latter part of the session, the tables again turned in favour of the bears and the indices not only erased all of their gains, but also ended in the negative terrain. The BSE Sensex declined 0.41 per cent and Nifty ended lower by 0.34 per cent. The broader indices outperformed the key benchmark indices with Nifty Mid-cap and Small-cap gaining 0.43 per cent and 0.26 per cent, respectively. Talking about the sectoral indices, barring Nifty IT and Nifty Pharma, all other indices ended in green with Nifty Realty, Metal and Media ending as top gainers. 
  
The US indices began the Tuesday’s session lower but rebounded after hitting their lows and the momentum switched to upside. This was partly helped by the solid results from Dow-component Walmart. On the US-China trade talks front, President Trump stated that the March 1 deadline for a US trade deal with China is not a ‘magical date’. In the end, Dow Jones added 0.03 per cent, tech-heavy Nasdaq gained 0.19 per cent and S&P 500 rose 0.15 per cent. 
  
The European stocks lacked clear direction on Tuesday amid disappointing earnings report. The DAX of Germany advanced 0.09 per cent, while the CAC 40 of France slid 0.15 per cent and the FTSE 100 of the UK slipped 0.56 per cent.