Indian markets likely to open positive

Indian equities markets witnessed a choppy trading on Friday. Meanwhile, during last hour of trading session buying grasped.  Nifty able to sustain 7200 level. The Sensex increased 59.93 points or 0.25% quoting 23709; and the Nifty upped 19 points or 0.26% quoting 7210.75.

Overall sectoral indices remained choppy during entire session on Friday. S&P BSE Auto surged by 0.87%. However, Capital goods and Oil & Gas indices declined during the last trading session of the week.

There are various vital events are lined up in the week. The Rail Budget, US Macro Economic data and February Future and Options (F&O) expiry will be key for market during the week.

According to Moody's Investors Service survey, Indian economy will grow at 7.5% in 2016 and 2017 as it is relatively less exposed to external headwinds, like China slowdown, and will benefit from lower commodity prices.

U.S. stock market too remained choppy closed broadly mixed. The Dow Jones industrial average decreased 21.44 points, or 0.13%, quoting 16392. The S&P 500 index declined 0.05 points, quoting 1917.78. The U.S. benchmark crude, WTI decreased 3.67% to USD 29.64, while Brent crude, the international standard, also weakened 3.7% to USD 33.01.

European stocks also closed lower. Germany's main index, the DAX, decreased 0.80% to 9388 along with France's CAC 40, which too reduced 0.39% to 4223. Britain's FTSE 100 diminished 0.36% quoting 5950.23.

The People's Bank of China pushed YUAN 163 billion (about USD 25 billion) into the financial system in open market operations through medium term lending facility (MLF), on February 19.

Markets in Asia traded positive after Central bank of China eases liquidity in the financial system during the morning session on Monday. Japan’s Nikkei 225 index increased by 1.17 per cent. Australia’s S&P/ASX 200 Index too rose 0.88% and New Zealand’s S&P/NZX 50 Index declined 0.15%. South Korea’s Kospi also reduced 0.23%. The Shanghai Composite index opened flat to positive by 1% at 2888.60.

While on domestic front, A SGX Nifty 50 index future for February series traded up 17.5 points at 7217.5. Indian markets are likely to open positive.