Scintillating start likely amid positive global cues

Going by early indication of SGX Nifty, the market is set to smile at the start. Blessing for the markets has come in the form of reports that say the government is chalking down a stimulus package to counter the economic slowdown and also planning a booster package for the capital markets, including relook at the LTCG for which the FM will meet market participants later in the day. The flow of good news does not end here as news of stabilising global bond yields and better-than-expected Chinese exports will further provide confidence to the bulls. At the time of writing, SGX Nifty is trading up by 5 points at the 11,076 mark. More than 200 companies are likely to report their earnings today, including Britannia Industries, BHEL, MRF, GAIL, Hindalco and BPCL.

The Asian markets were trading higher on Friday following strong cues from the Wall Street overnight. The Japanese stock index Nikkei 225 has risen 0.66 per cent and leading the gainers list as data showed that Japan’s economy grew at a faster-than-expected pace in the period from April to June. Hong Kong’s Hang Seng has added 0.32 per cent and China’s Shanghai Composite index was up by 0.27 per cent.

Back home, Thursday turned out to be a fabulous day for the stock markets as bulls roared back on Dalal Street with key benchmark indices Nifty and Sensex reclaiming their important psychological levels of 11,000 and 37,300. For the first half of the trading session, the indices moved in a sideways trajectory, however, a scintillating rally was seen in the penultimate hour as reports started flashing in the media that the FM is working on confidence booster package for the capital markets, including relook at the LTCG. This was certainly music to ears of the bulls. The broader market indices too witnessed buying interest with Nifty Midcap and Smallcap advancing 0.70 per cent and 1 per cent, respectively. Talking about the sectoral performances, all sectoral indices ended in the positive territory with Nifty Auto, Nifty IT and Nifty Realty emerging top gainers.

The US stocks finished solidly higher on Thursday as sentiments improved on Wall Street on the back of better-than-expected trade data out of China, which showed an expansion in exports. Further, some stabilisation in global bond yields aided sentiment. The Dow jumped 1.4 per cent, the teach-heavy Nasdaq climbed 2.2 per cent and the S&P 500 rose 1.9 per cent.  

The European stocks settled higher on Thursday amid rebound in global bond yields and stronger-than-expected Chinese exports data. Germany’s DAX surged 1.68 per cent, France’s CAC 40 edge higher 2.31 per cent and UK’s FTSE 100 advanced 1.21 per cent.