Relief rally may continue

Indian equities markets jumped around 2.5% on Monday and posted their best gains in a month on the back of short-covering amid supportive global cues after last week's massive selloff. Further, contraction in the wholesale price index (WPI)-based inflation for the fifteenth straight month and strengthening rupee boosted sentiment. The Sensex ended up 568 points or 2.5% at 23554.12, and the Nifty was up 182 points or 2.6% at 7162.95. Buying was visible in broader markets as well. The BSE mid-cap and small-cap indices advanced 3.47% and 3.35% respectively.

European and Asian markets rallied Monday on hopes that more economic stimulus measures from global central banks would be forthcoming.

U.S. markets are closed Monday for Presidents Day but U.S. stock futures were trading higher by more than 1%. Oil prices rose on Tuesday as news of a rare private meeting of top officials from the world's biggest oil producers spurred speculation of an eventual deal to tackle a deep supply glut. Brent crude settled 3 cents higher at USD 33.39 on Monday. WTI oil prices rose 1.3% to USD 29.83 a barrel.

European markets have closed higher after the head of the ECB reiterated that more stimulus would be considered at the next policy meeting in March. Britain's FTSE 100 closed 2% higher at 5,824.28 and Germany's DAX gained 2.7% to 9,206.84. France's CAC 40 rose 3% to close at 4,115.25. The Stoxx Europe 600 index jumped 3% to close at 321.76.

Markets in Asia mostly higher on Tuesday but fear factors hanging over markets include China, oil and negative interest rates. Japan’s Nikkei 225 index climbed 0.90%, erasing an earlier drop of 1.2%. South Korea’s Kospi index gained 1.3%. Australia’s S&P/ASX 200 Index traded at flat. New Zealand’s S&P/NZX 50 Index climbed 0.41%. The Shanghai Composite Index traded up 2.31% at 2809.50.

While on domestic front, a SGX Nifty 50 index future for February series traded up 42 points at 7,216. Indian markets are likely to open in green following the other Asian markets.