Market likely to open in green tracking positive global cues

Indian equities market made a smart recovery in the last hour of trading, and erased earlier losses as investors ignored a spurt in wholesale inflation as well as forecast of a monsoon delay. The Sensex ended up 163.66 points or 0.6% at 25653.23; and the Nifty ended up 45.85 points or 0.6% at 7860.75. The broader markets too showed strength with the BSE Mid-cap rising 0.30% and Small-cap gaining 0.09%.

Wholesale prices (WPI) moved out of deflationary territory after 17 months in April, rising by 0.3% compared to a contraction of 0.8% in March—driven largely by rising food prices. With consumer price inflation in April rising to 5.4%, prospects for a fresh interest rate cut by the Reserve Bank of India (RBI) have dimmed for the next few months.

U.S. stocks closed higher Monday, snapped a three-week losing streak as a surge in oil prices and a rally in tech stocks overshadowed weaker-than-expected manufacturing data from the New York region. The S&P 500 surged 20.04 points, or 1%, to close at 2,066.53. The Dow Jones Industrial Average closed up 175.39 points, or 1%, at 17,710.71 and the Nasdaq Composite Index surged 57.78 points, or 1.2%, to close at 4,775.46.

Oil prices hit their six-month highs on Monday after Goldman Sachs said that the market is now in a supply shortfall. WTI crude rose USD 1.51, or 3.3%, to settle at USD 47.72 a barrel and Brent crude gained USD 1.14, or 2.4%, to USD 48.97 a barrel.

European markets closed broadly flat hovering around the flat line on Monday as investors weighed disappointing Chinese data against a rally in oil prices. The Stoxx Europe 600 rose 0.05 point to end at 334.73, close to an intraday high. France’s CAC 40 fell 0.2% to 4,312.28 and the U.K’s FTSE 100 rose 0.2% to 6,151.40. Trading was closed in Germany for the Whit Monday holiday.

Asian shares have advanced early Tuesday, after a rebound in Apple shares and oil price gains boosted Wall Street. Japan's Nikkei 225 gained about 0.82%, probably boosted in part by a slightly weaker yen. The Kospi index in Seoul was down 0.11%. Australia's S&P/ASX 200 was up 0.51% and and New Zealand’s S&P/NZX 50 Index advanced 0.88%. China’s Shanghai composite has been lowered by 0.20%.

On the domestic front, A SGX Nifty 50 index future for May series is trading up by 26.50 points at 7,906. Indian markets are likely to open in green due to positive global cues. Investors will be keeping an eye on Bharat Forge, Motherson Sumi, Symphony and Voltas, results for which are due for release today.