Markets Likely To Open Positive On Firm Global Cues

The BSE Sensex fell for a second consecutive session on Yesterday on profit-booking and weak global cues and rise in crude oil prices dampened market sentiment, which led to selling pressure across sectors. The Sensex, fell below the psychological 26,000 mark. The Sensex and the 50-unit CNX Nifty, both, hit their lowest closing level in more than 9 weeks. The Sensex closed 1.33%, or 350 points, lower at 25,999.34 points, while Nifty shed 1.47%, or 115.80 points, to end at 7,748.20 points. The exit poll prediction of a clear majority to Modi-led BJP in assembly election conducted in Maharashtra and Haryana also could not arrest the fall of Nifty to its lowest level in over nine weeks.

Both the indices, BSE Small-Cap and Mid-Cap indices was decline sharper than the Sensex in percentage terms. The BSE Small-Cap index lost 2.71%. The BSE Mid-Cap index was off 2.42%. All the 12 sectoral indices on BSE edged lower.

On the global front, U.S. stocks recovered from an early 200-point plunge, led by small-caps, while Federal Reserve official who suggested the central bank should consider delaying the end of stimulus plans. Oil jumped after dropping below $80. By the closing bell most indexes were showing modest gains. By the end of the day, the Dow Jones industrial average lost 24.5 points (0.15%), to 15,117.24. The Standard & Poor's 500 index closed up marginally, at 1,862.76, to 1,862.49 and the Nasdaq composite rose 2.97 points (0.05%), to 4,217.39.

On the U.S. economic front, it was mostly positive on Thursday. Jobless claims fell by 23,000 to 264,000, the lowest level since 2000 last week, the Labor Department said. Economists surveyed by The Wall Street Journal had forecast 290,000 claims.  Federal Reserve said Thursday, industrial production rose 1% in September and the biggest gain since November 2012, beating expectations of a 0.4% gain. Therefore, the U.S. dollar recovered, with the dollar index stabilizing at 84.950, off a three-week low of 84.472 hit on Wednesday.

European stocks ended a roller-coaster session at a ten-month low Thursday, amid continuing gloom over the state of the region’s economy. European Stoxx Europe 600 ended 0.4% lower, at its lowest close since mid-December. Germany’s DAX and France’s CAC index of leading shares also recovered after contracting by 2% and 3% respectively in early trading to finish marginally down on the day.

Asian equity indices taking a breath after a Federal Reserve official said the central bank should consider delaying the end of bond purchases and U.S. data eased concern over the global economy. Japanese stocks swung between gains and losses, the Topix index declined 0.29% to 1,192.03 whereas the Nikkei 225 Stock Average up by 0.5% to 14,745.37. Hang Seng also up by 0.57% to 23,031.31 and The MSCI Asia Pacific Index (MXAP) down by 1.26% to 134.8.

A SGX Nifty Index future is trading in positive with up by 0.67% to 7809.  Today we expect Indian market likely open in positive note on back of stronger U.S. economic data and Federal Reserve official who suggested the central bank should consider delaying the end of stimulus plans.