Markets May Open On A Positive note

On Tuesday Indian markets showed enough strength as RBI surprised bourses with 50 BPS Repo rate cut. Immediately after the announcement benchmark Sensex markets reacted quite positively and moved northward with 400 plus points rally but since then it caught attention of global gloom, which limited its free upside movement. As markets were expecting just 25 basis point cut in the key interest rates, benchmark Sensex and Nifty made a sharp rebound upward move during the intraday trade. Sensex bounced back from its low, gaining crucial 161 points, while Nifty also showed the strength and held 7800 points level strongly to close at 7843 points at the end of the week, a gain of 47 points.  Positive thing was that all sector indices also showed optimism and closed in green.

Though Indian markets remained positive on Tuesday, mayhem persists in the European markets. Interestingly whole of the Europe seemed quite pessimistic about the global slowdown concern and concern around Volkswagen fiasco. European markets were on declining trend on Tuesday as UK’s FTSE shed 0.83% on Tuesday followed by Germany’s DAX, CAC40 and EuroNext, which declined 0.35%, 0.31% and 0.72% respectively.

Unlike European markets, US markets remained a mix bag as concern over Chinese economy slowing down further hovering over global markets. Markets are now waiting for Chinese data that is slated to come on Thursday. On Tuesday US indices opened quite weak and remained range bound but gained momentum in the end. Dow Jones industrial average gained marginally 0.30% on Tuesday to close at 16049 points, while, S&P 100 showed a growth of just 0.12%. But Nasdaq shed 1.96%.

Though, in the morning trade Asian Indices showed some strength on the heels of short covering, they lacked the volume and strength. During the morning trade Japan’s Nikkei 225 was trading high at 1.83 percent due to quite subdued performance of global indices considering global slowdown concern. SSE composite and Hong Kong’s Hang Seng were trading quite soberly with small gains of 0.37% and 0.70% respectively. STI, though lost 0.33% in the morning trade.

Premarket benchmark index SGX Nifty depicting Indian market was also trading in the positive territory with 0.39 percent growth but lacked momentum. Keeping an eye on the global situation, it seems that markets has discounted the positivity of RBI rate cut and are in search of some other trigger on the domestic front. Considering this markets are expected to remain sluggish in the opening trade.