Expecting another positive start

Indian equities markets continued their post-Budget rally for the second straight session, mostly driven by banks, after the Reserve Bank of India changed rules that determine banks' regulatory capital; and owing to positive global cues. Also there are hopes that RBI may soon undertake a rate-cut after the government in the recently-concluded budget restrained from increasing the fiscal deficit target to aid growth. The Sensex climbed by 463.63 points or 1.95% quoting 24,242.98 to get past the 24,000-mark. The Nifty also ended firm at 7,368.85, up 146.55 points, or 2% higher. The broader markets too traded in line with benchmarks as the BSE Midcap index gained 1.9 percent and Smallcap rose 2.2 percent. About three shares advanced for every share declining on the BSE. The broader markets also rallied in line with benchmarks. The BSE Midcap and Smallcap indices gained around 2% each.

U.S. stocks rose slightly on Wednesday, building on the previous session’s advance; and higher oil prices fueled a rally in energy shares. The Dow Jones Industrial Average added 34.24 points, or 0.2%, to 16899.32. The S&P 500 rose 8.10, or 0.4%, to 1986.45; and the Nasdaq Composite gained 13.83, or 0.3%, to 4703.42.

Crude-oil prices settled higher on Wednesday after a report showing record U.S. crude stocks was offset by evidence that production in an oversupplied market continues to decline. Brent crude added 12 cents, or 0.3% to USD 36.93 a barrel on London’s ICE Futures exchange. U.S. crude settled at USD 34.66 a barrel, up 26 cents, or 0.76% after hitting a session peak of USD 35.17.

European stocks finished higher for a fifth straight session on Wednesday, with the Stoxx Europe 600 index finishing up 2.25 points, or 0.6%, at 340.97. Germany’s DAX 30 gained 59.46 points, or 0.6% to 9,776.62; and France’s CAC 40 gained 18.05 points, or 0.4%, to 4,,424.89.

Markets in Asia traded up on Thursday following a slightly higher finish on Wall Street overnight. Japan’s NIKKEI 225 index gained 0.70%, after jumping 3.8% on Wednesday to a one-month high. South Korea’s Kospi index advanced 0.1% and Australia’s S&P/ASX 200 Index added 0.66%, climbing for a fourth day. New Zealand’s S&P/ASX 200 Index rose 0.70%.

While on domestic front, A SGX Nifty 50 index future for March series traded up 54 points at 7,415. Indian markets are likely to open in the green following other Asian markets.