Markets to Open In Positive with Limited Gains

The Indian market opened gap down as predicated last morning over weak global cues. However, the market recovered in tandem with its immediate peer market China. The Chinese market recovered and closed almost 2 per cent higher which gave considerable bullish sentiments for our domestic markets. The banks lead the recovery taking the NSE Nifty to hover at psychological levels of 8000.

The finance minister yesterday concluded its four day road show to attract foreign investors in Singapore and Hong Kong. Admitting the challenges in tax issues with Vodafone, Shell and others, the finance minister promised to revolutionize the tax regime in India very soon. This also gave some support for the market recovery late in yesterday’s trading session.

With recovery in Asian markets, the European market too showed higher closing. The CAC 40, DAX and FTSE 100 closed higher by 1.06, 0.33 and 0.08 per cent yesterday. The positive closing was supported by morning gains in American markets too. The strong global markets coupled with the strong dollar caused the US market to trade higher. The Dow Jones, S&P 500 and Nasdaq closed higher 0.77, 0.46 and 0.04 per cent yesterday.

The global bullishness and European central bank’s stance to ease its monetary policy further gave further rise in Asian market today morning. The Hang Seng and ASX 200 were trading higher by 0.86 and 0.62 per cent today morning.

The premarket barometer of the Indian market, SGX Nifty, too was trading in marginal green with 0.14 per cent gains in the morning. We expect market to open in positive with limited gains.