Nifty Likely To Open Higher With A Gap-Up

Indian equities market was recovering from its 15-month low depths on Tuesday led by buying in banking, metal, capital goods, power stocks and recovery in rupee. At the gathering, Assocham told the PM that policymakers needed to act fast to 'bullet-proof' India from the global headwinds. He called for a deep cut in interest rates and new duties to stop dumping of Chinese. The BSE Sensex and NSE Nifty gained 424.06 points and 129.45 points at 25,317.87 and 7,688.25, respectively, on Tuesday. The BSE Mid-Cap index rose 1.02%. The BSE Small-Cap index rose 0.60%. Both these indices underperformed the Sensex.

U.S. stocks ended sharply higher Tuesday after the Labor Day holiday with the main indexes posting their second-largest daily gains of the year. Many investors remain anxious about the health of China and the global economy and are on alert ahead of next week’s Federal Reserve meeting. The Dow Jones Industrial Average climbed 390.30 points, or 2.4%, to 16492.68. The S&P 500 gained 48.19 points, or 2.5% to 1969.41, and the Nasdaq Composite Index advanced 128.01 points, or 2.7%, to 4811.93. U.S. markets were closed Monday for the Labor Day holiday.

European stocks closed sharply higher after data showed rising exports propelled Germany’s trade balance to a record surplus in July. Germany’s DAX index gained 1.6% and France’s CAC-40 advanced 1.1%. The U.K.’s FTSE 100 rose 1.2%.

Brent crude futures jumped as much as 4% to USD 49.52 on Tuesday as strong stock markets helped the global oil benchmark recover substantially from a 6% tumble in the previous session. WTI crude-oil prices fell 0.2% to settle at USD 45.94 a barrel.

Asian shares surged early Wednesday, extending a global rally, inspired by the positive finish in offshore markets and as investors bet on China to step on the stimulus pedal soon. Japan’s NIKKEI 225 index jumps 5.6% to hit a near one-week high, after crashing 2.4% to erase all gains made this year on Tuesday. South Korea’s Kospi index advanced 2.2%. Australia’s S&P/ASX 200 Index climbed 1.5% and New Zealand’s NZX 50 Index rose 1.05%. China's Shanghai Composite index rose nearly 1.6%, extending Tuesday's 2.9% rally, amid news that the government may be stepping up on fiscal policy to support the economy.

A SGX CNX Nifty Index future for September delivery was up 113 points at 7,849. Nifty is likely to open higher with a gap-up led by strong global cues.