Market Likely To Open In Green On Firm Global Markets

Indian stock markets changed gears after six sessions of loss as it recovered from over a four-week low and notched up gains by over 31 points in a choppy trade on the back of value-buying in blue-chips, but fears over weak earnings weighed. The Sensex cut initial gains in the afternoon trade and ended 31.44 points up at 26,590.59 after rising over 150 points in the early trade, while the Nifty held its key 8,050 level to settle at 8,060.70, up 9.90 points. The BSE Mid-Cap index rose 0.28%. The BSE Small-Cap index rose 0.39%. Both these indices outperformed the Sensex.

Mood brightened after core sector growth rose to a 4-month high of 3.2% in September. The infrastructure growth rate in September was the highest since May when it was 4.4%. Moody's Investors Service yesterday said the economy would grow at 7.5% in the current fiscal and improve marginally in the following year, which too spread cheer. Moody's also upgraded its credit outlook on India's banking system to 'stable' from 'negative'. Faster economic growth, narrowing deficits and a slowing inflation are all making India an attractive investment destination.

U.S. stocks finished higher Tuesday, shrugging off lackluster corporate results to extend gains for a second session in a row, as energy shares helped prop up the main indexes. . Investors also worked through corporate news and prepared for key U.S. economic data later this week. The Dow Jones Industrial Average rose 89.39 points, or 0.5%, to close at 17,918.15. The S&P 500 rose 5.74 points, or 0.3%, to 2109.79, while the Nasdaq Composite rose 17.98, or 0.4%, to 5145.13.

Crude prices settled up about 4% on Tuesday as a rally in U.S. gasoline and diesel amid an outage on a key pipeline system added support to oil markets already boosted by an industry strike in Brazil and force majeure for Libyan crude loadings. Benchmark U.S. crude added USD 1.76, or 3.8%, to close at USD 47.90 a barrel on the New York Mercantile Exchange. Brent crude, which is used to price international oils, rose USD 1.75, or 3.6%, to USD 50.54 a barrel in London.

Europe’s benchmark stock index ended at its highest close in 11 weeks on Tuesday, as oil companies jumped on the back of a sharp rebound in oil prices. The Stoxx Europe 600 rose 0.4% at close at 378.36, after swinging between gains and losses for most of the session. Germany’s DAX 30 ended flat at 10,951.15. The gains for the heavyweight oil companies helped propel the U.K.’s FTSE 100 0.3% higher to 6,383.61 and France’s CAC 40 index up 0.4% to 4,936.18.

Asian stocks rallied early Wednesday with Japanese stocks leading the way, thanks to a positive lead from Wall Street and firmer crude oil prices. Tokyo's Nikkei 225 surged 2.4% after three firms affiliated with Japan Post made strong trading debut with investors rushing to get a piece of the group's USD 12 billion initial public offering. Shanghai stocks advanced 1.9%, Australian shares gained 0.7% and Hong Kong's benchmark jumped 3.0%.

A SGX CNX Nifty Index future for November delivery was up 74 points at 8,150. Indian market is likely to open in green on tracking SGX Nifty and firm global markets.