Positive opening likely on cues from Asian peers

Indian benchmark indices are likely to open mildly in the positive terrain. The SGX Nifty is pointing to a rise of 26 points for the Nifty at the start of session.  

Asian stock markets are trading with modest gains on Thursday after the US Federal Reserve hiked interest rates for the first time this year. Japan’s benchmark index Nikkei 225 has gained 0.38% to 21,462, Hong Kong’s Hang Seng is trading near the flat line, while China’s Shanghai Composite has lost 0.37% to 3,269.   

Back home, Indian equity benchmarks ended a highly volatile day of trade with marginal gains. After a positive opening, markets extended their gains, and at one point, Nifty reclaimed its psychological mark of 10,200. However, in the mid-afternoon session, the intra-day gains fizzled out and markets came off significantly from the high point of the day.  The Nifty ended with gains of 31 points at 10,155 and the BSE Sensex rose 139 points to end at 33,136. The broader indices ended in the green as Nifty Mid-cap and Nifty Small-cap rose 0.37% and 0.14%, respectively.  

The US stocks saw significant volatility as traders were in anxious mood ahead of announcement from the Federal Reserve on Wednesday before ending the session slightly below the flat line. The Fed announced its widely anticipated decision to increase interest rate by 25 basis points and, more importantly, the Fed signalled that it expects to deliver two more hikes before the end of the year. Market participants were expecting a more aggressive pace, with four hikes in the year 2018; however, the central bank upped its forecast for 2019. The Dow Jones Industrial Average ended down 45 points at 24,682, the Nasdaq Composite Index slipped 19 points to close at 7,345 and the S&P 500 dipped 5 points to finish at 2,712.  

The European markets ended Wednesday’s session with mixed results. Germany’s DAX index added 0.01%, while France’s CAC 40 index dipped 0.24% and UK's FTSE 100 declined 0.32%. Traders will keep eyes on the Bank of England policy announcement on Thursday.