Markets to Open In Green

Domestic markets closed in red after holding strong till afternoon. The global credit rating company, S&P came with report on the India’s credit rating and said in its report that the country's low income levels and weak fiscal and debt indicators constrain the country's credit profile. The market turned negative on the concern over the country’s credit rating and the BSE Sensex closed below psychological level of 29000 yesterday. All the sectoral indices were closed in the red. The market loss weighed down by heavy losses in Oil & Gas, Reality, FMCG, Banking and Metal stocks. Their respective indices were down by 1.91, 1.32, 1.26, 0.88 and 0.84 per cent respectively.

Meanwhile, according to the data collated by Bank of America, the foreign institutional investors’ holding in the Sensex 30 companies have reached to an all time high of over 23 per cent of the total market capitalization in December 2014. The same stood at just 15 per cent of the total market capitalization in March 2009. This drastic increase in holding pattern was only because of the optimism about Indian economy created after majority Government’s push for the reforms in the center.

The European markets touched to their seven year high on Monday after the four months extension to Greece’ bailout. The French stock market index CAC 40 and the German stock market index DAX closed at 4862 and 11131, up by 0.65 and 0.73 per cent respectively during the Monday’s trading session. However the investors are waiting for the reform proposals from the Greek government which will be reviewed by the European commission, and the IMF. However, the UK market closed lower on the HSBC’s worst financial performance in last three years. The UK FTSE closed marginal down by 0.04 per cent at 6912.

On US markets front, there was mixed bag reaction on Monday. The drop in oil prices was weighing on the energy stocks while the pickup in the merger and acquisition activity in pharmaceutical industry was pushing these stocks higher on the bourses. The Nasdaq continued its consecutive 9 session winning streak and closed further higher at 4961. However, the S&P 500 and Dow Jones Industrial Average were down by 0.03 and 0.13 per cent respectively on Monday.

On Tuesday morning, there was mixed bag reaction from Asian markets. The Hong Kong shares were down on the HSBC’s weakest financial performance in recent past. The Hang Seng was trading down by 0.15 per cent in the morning. The Japanese market was too showing some pressure on investors taking some money off the table after a string of fresh 15-year highs for the market. However, the Japanese Nikkei 225 was trading up marginally by 0.10. The Australian ASX 200 was too trading marginal higher by 0.29 per cent on some selected good earnings results.

The pre-market barometer for Indian market, SGX Nifty was too trading higher by 10 points at 8756 on Tuesday morning. We too expect market to open marginal up, however, the market to remain volatile.