Indian markets to continue the rally

Indian equities markets recovered in last hour of trading session and rose by 0.85% on Wednesday after witnessing selling pressure at the start of the day. The bourses erased losses made during the first half of the trading session. The Sensex increased by 189.90 points or 0.82% quoting 23391.87; and the Nifty upped 60.20 points or 0.85% at 7108.45.

Overall sectoral indices remained positive except Bank Nifty and consumer durables. Meanwhile, the BSE mid-cap index increased just 0.47% and the small-cap index rose 0.21%.

U.S. stock market is closing broadly higher as the market notches its third sizable gain in a row. The Dow Jones industrial average rose 258 points, or 1.59%, to 16454. The S&P 500 index gained 31 points, or 1.65% to 1927. The Nasdaq composite climbed 98 points, or 2.21% to 4534.

Iran cautiously welcomed oil freeze plan of majority of oil producer countries such as Saudi Arabia, Russia, Qatar and Venezuela, and as an effect crude oil prices shot up. The U.S. benchmark crude, WTI increased 2.87% to USD 31.53, while Brent crude, the international standard, also jumped 7.21% to USD 34.50.

European stocks shot up on gains of oil prices and investors were greeted by fresh economic gloom. Germany's main index, the DAX, increased 2.65% to 9377.21 along with France's CAC 40, which rose 2.99% to 4233.47. Britain's FTSE 100 jumped the trend, rising 2.87% to 6030.32.

Markets in Asia traded higher in morning session on Thursday continuing the global rally owing to oil price rallies. Japan’s Nikkei 225 index increased by 2.37 per cent after witnessing gap up opening by 2.59%. Australia’s S&P/ASX 200 Index too rose 1.62% and New Zealand’s S&P/NZX 50 Index advanced 0.45%. South Korea’s Kospi index also increased 1.18%. The Shanghai Composite Index traded up 0.50% at 2881.78.

While on domestic front, A SGX Nifty 50 index future for February series traded up 61 points at 7197. Indian markets are likely to open in the green.