Markets may start in the green amid positive global cues
Indian stock markets is set for a positive start thanks to a good session in the United States. The SGX Nifty is pointing to a rise of 11 points for the Nifty at the start of the trading. Traders will be keenly watching the 10,165-mark as it is 200-day SMA for the Nifty and a sustainable move above this level would have an extension of a pull-back rally.
Majority of stock markets in Asia were in the green on Wednesday. Hong Kong’s Hang Seng surged 1.10% to 31,902 and China’s Shanghai Composite has inched up 0.62% to 3,311, while Japan’s benchmark index Nikkei 225 has lost 0.47% to 21,381.
Back home, we had yet another gap-down opening on Tuesday as global cues were not quite encouraging. However, we saw good amount of buying interest emerging at the lower levels. This optimism pushed the frontline indices higher to shave off the entire losses and to conclude the session with modest gains. The BSE Sensex ended higher by 74 points to settle at 32,997 and the Nifty closed at 10,124 with gains of 30 points. The broader indices had a decent outing as Nifty Mid-cap and Small-cap added 0.38% and 0.26%, respectively. The IT stocks rose after three sessions of fall, with the Nifty IT index gaining about 1.51%.
The US stocks ended modestly higher on Tuesday as investors put off big bets before the monetary policy takes centre stage with the Federal Reserve expected to raise interest rates at its meeting on Wednesday. The Dow Jones Industrial average gained 116 points to close at 24,727, the S&P 500 rose 4 points to finish at 2,717 and the Nasdaq Composite index surged 20 points to end at 7,364. Facebook extended its decline, with the social media giant slumping by over 9 per cent in one week.
The European indices swung between small gains and losses during the course of Tuesday’s session, but concluded the session in the green. Trading remained somewhat subdued as market participants turned cautious ahead of policy decision from the Fed which is due on Wednesday, followed by announcement from Bank of England which is due on Thursday. Germany’s DAX index climbed 0.74%, France’s CAC 40 index inched up 0.57% and UK's FTSE 100 gained 0.26%.