ECB stimulus probability may led to markets open positive

Indian equities markets have slipped into the red after getting a gap-up opening and ended lower on Thursday due to fresh selling pressure amidst weak global cues following a fresh dip in oil prices. Further weakening of the rupee, which again breached the 68 mark against the dollar also took its toll. The Sensex sinked further to end below the 24,000-mark for first time since May 2014 and it was down 99.83 points or 0.4% at 23962.21. The Nifty also stooped below the 7,300-mark and slipped 32.50 points or 0.4% at 7276.80. In broader markets, mid-cap index fell 0.30% while small-cap index gained 0.53% as investors widened positions in selected counters.

Finance Minister Arun Jaitley made a statement that India is gradually transforming most of its taxation laws for a greater degree of stability and predictability. He also stressed that the proposed Goods and Services Tax (GST) is a major step in this direction.

U.S. stocks staged a modest recovery on Thursday, due to a sharp rebound of oil prices. The Dow Jones industrial average has gained 115.77 points, or 0.73%, to 15,882.51; the S&P 500 was up 12.28 points, or 0.66%, to 1,871.61; and the Nasdaq advanced 12.26 points, or 0.27%, to 4,483.95. The Fed’s policy meeting is scheduled for January 27-28, 2016.

Europe's stock markets also bounced back on Thursday after European Central Bank signaled a stimulus talk. The bank’s monetary policy meeting will be in March, cranking up expectations of a further cut in interest rates and a potential expansion of the ECB’s huge bond-buying stimulus.

Crude oil prices rebounded more than USD 1 a barrel from 12-year lows on Thursday. WTI oil prices rose 4.2% to USD 29.53 a barrel on Thursday after data showed that oil supplies failed to rise as quickly as the most extreme estimates had suggested. International benchmark Brent was up USD 1.42, or 5.1%, at USD 29.31 a barrel.

Asian markets saw a rebound on Friday, following a rally in Europe and U.S. shares amidst optimism that policy makers in Europe and Asia will step in with more stimulus measures. Japan's Nikkei 225 jumped 3.5%, the most since September. South Korea’s Kospi index climbed 1.73%. New Zealand’s benchmark gauge added 0.5 percent and Australia’s S&P/ASX 200 Index increased 0.9 percent. Australia’s S&P/ASX 200 Index advanced 1.26% and New Zealand’s S&P/NZX 50 Index gained 0.62%. Shanghai Composite index showed gains of 0.71%.

While on domestic front, A SGX Nifty 50 index future for January Series traded up 54 points at 7,360. Indian markets may open in the positive following other Asian markets.