Market Likely To Open In Positive

Indian equities market completely wiped out previous day's gains on Wednesday as the continued uncertainty over China's economic growth weighed on investor sentiment and the upcoming derivatives expiry on Thursday flared up volatility. The Sensex cracked 317.72 points or 1.22% to 25714.66 and the Nifty ended below the 7800-mark, down 88.85 points or 1.13% to 7791.85. The BSE Midcap also lost ground, down 0.8%.

US stock markets surged on Wednesday afternoon after solid economic data encouraged some investors, ending a six-day sell-off sparked by growing global concerns about the health of the Chinese economy. The Dow Jones industrial average rebounded in a big way Wednesday, surging nearly 620 points; its third-best daily point gain ever and best since 2008 and closed to 16,285.51. The broader S&P 500 index gained 3.9% in closing at 1,940.05, and the Nasdaq composite index shot up 191.05 points, about 4.2%.

Traders said shares were helped in part by a Commerce Department report that showed U.S. orders for durable goods, such as cars and appliances, rose a higher-than-expected 2% in July after a 4.1% gain in June and further raising economists’ estimates for U.S. growth between April and June.

European stock markets lost ground again as fears persist of a China-led economic downturn. Germany’s DAX and Spain’s IBEX both lost 1.3%, and the French CAC dropped 1.4%, despite the European Central Bank hinted at more monetary stimulus. The FTSE 100 fell by 102 points, or 1.68%, by the close of trading to 5,979 points, below the key 6,000 mark.

Asian stocks rose on Thursday as a sharp rebound on Wall Street's biggest one-day gain since 2011 overnight. Japan’s NIKKEI 225 index rose 1.9%. South Korea’s Kospi index gained 1.3% and Australia’s S&P/ASX 200 Index climbed 1.46%. New Zealand’s NZX 50 Index rallied 1.1%. The Shanghai Composite traded in positive turf, but remain just shy of reclaiming the key 3,000 level as gains fluctuated.

A SGX CNX Nifty Index future for August delivery was up 92 points at 7,877. Indian market is likely to open in positive. Going forward, the market may remain volatile due to F&O expiry on Today.