Markets likely to open flat

Indian equities indices posted their biggest single-day day gain in a month on account of recent string of positive corporate results, which raised hopes of an improving domestic economy. Sentiment was also boosted after weak Chinese trade data and US jobs data left some economists anticipating only one interest rate hike from the Federal Reserve this year. The Nifty ended up 132.60 points or 1.7% at 7866.05 while the Sensex closed up 460.36 points or 1.8% at 25688.86. The broader markets underperformed the benchmark indices. The BSE mid-cap and Small-cap indices gained 1.25% and 1.2% respectively.

U.S. stocks closed in the mix on Monday owing to a rally in health-care stocks, while the Dow Jones Industrial Average retreated as uncertainties in the oil prices weighed on Wall Street. The S&P 500 rose 1.55 points to close at 2,058.69, led by a 1.1% gain in Healthcare stocks. The Nasdaq Composite added 14.05 points, or 0.3%, to finish at 4,750.21, while the Dow slid 34.72 points, or 0.2%, to close at 17,705.91.

Crude oil prices fell after reports that wildfires in Canada had slowed and moved away from key oil-production facilities. The one more big news in oil markets Monday is the likelihood of a hoped-for production freeze from the Organization of the Petroleum Exporting Countries, which faded amid the reshuffling of Saudi Arabia’s power players. WTI oil ended down a 2.7% at USD 43.44 a barrel, and the global Brent contract lost 3.8% to finish at USD 43.63 a barrel.

European stocks finished in the mix on Monday, as weak China data pulled down markets. The Stoxx Europe 600 added 0.5% to finish at 333.22. Germany’s DAX 30 index jumped 1.1% to finish at 9,980.49, while France’s CAC 40 index gained 0.5% quoting 4,322.81. But the U.K.’s FTSE 100 index fell 0.2% y end at 6,114.81.

Mostly Asian markets opened higher in early trade on Tuesday. In Japan, the Nikkei 225 added 1.56% as the yen traded near a two-week low. South Korea’s Kospi index added 0.35%. Australia’s S&P/ASX 200 Index traded flat. New Zealand’s S&P/NZX 50 Index 0.22%. China’s Shanghai has been lowered by 0.22%.

On the domestic front, A SGX Nifty 50 index future for May series is trading down by 25 points at 7,879. Indian markets are likely to open flat. Investors will be keeping eye on Tata Steel and Zee entertainment results due for release today.