Market Is Likely To Open In Green

Indian equities indices closed nearly unchanged on Friday but rose rallied for the second week in a row. Sensex and Nifty added 2.2-2.3% over the week to end at 28,879 and 8,780 levels respectively. The sentiment turned positive after the ratings agency Moody's upgraded India's ratings outlook from 'stable' to 'positive' and said there could be a ratings upgrade too in the coming months, if policy announcements by the government are actually implemented. Mid-cap and small-cap stocks outpaced the gains in blue-chips, which was also reflected in the CNX mid-cap index which surged 3.5% towards its all-time high level during the week. Meanwhile, BSE small-cap index rose 6.3%.

However, Reserve Bank of India, in its monetary policy on April 7, left the short-term lending rate or repo rate unchanged and also kept the cash reserve ratio and the statutory liquidity ratio static, which weighed on the markets as Sensex closed almost flat on Tuesday. Later, it continued its upward trend on Moody's report and hopes of delay in the US interest rate hike.

Raising hopes of investment cycle uptick, industrial growth jumped to nine-month high of 5% in February compared with 2.8% in the previous month on the back of strong manufacturing sector and higher offtake of consumer as well as capital goods. It shows the fourth successive month of growth. In the April-February period of 2014-15, IIP grew 2.8% as against contraction of 0.1% in same period of previous fiscal.

U.S. Stocks market advanced on Friday, notching a second straight weekly gain in a row, as General Electric Co.’s plans to selling its long-struggling lending business buoyed the Dow industrials and S&P 500. The S&P 500 closed 10.88 points, or 0.5%, higher at 2,102.05 and recorded a 1.7% gain over the week. The Dow Jones Industrial Average added 98.92 points, or 0.6%, to 18,057.65 and gained 1.7% over the week. The Nasdaq Composite ended the session up 21.41 points, or 0.4%, to 4,995.98 and recorded a 2.2% weekly gain.

European stocks also rose Friday, climbing to a 15-year record for the second day in a row hopes that weaker currencies would support corporate profits. The Stoxx Europe 600 on Friday moved further into record territory, up 0.9%, putting its weekly gain at 3.8%. While the French CAC 40 Index rose by 0.6%, the U.K.'s FTSE 100 Index jumped by 1.1% and the German DAX Index soared by 1.7% on Friday.

Chinese shares led gains among regional peers to touch fresh seven-year highs early Monday. While the Japanese stock market is marginally lower on Monday morning, after rising above the 20,000 on Friday for the first time in 15 years. China's Shanghai Composite index held on to a 1% gain despite exports fell more-than-expected, down 14.6% in March from the year-ago period, official data showed on Monday. In Hong Kong, the Hang Seng index elevated 0.4% to its highest level since January 2008, on course to extend gains into a fourth straight session. Australia's S&P ASX 200 index saw marginal gains as worries over the impact of plunging iron ore prices lingered.

SGX Nifty is trading marginally lower by 5 points. Indian market is likely to open in green. For the future course of action, traders will be looking for the week at macroeconomic data, including CPI and WPI to be released on April 13 and 14, respectively. The next major trigger for the Indian markets is Q4 results which will start from this week.