Market may open positive on strong GDP data

Indian equities indices snapped a 5-day gaining streak on Tuesday, weighed down by profit-taking amid a lower opening in Europe. The Sensex fell 57.64 points, or 0.22%, to close at 26,667.96 and and the Nifty declined 18.40 points to 8,160.10. In the broader market, the BSE Midcap and Smallcap indices ended lower by 0.18%-0.14%. During May, the Sensex has risen 1,061.34 points, or 4.14%, while the Nifty has gained 310.30 points, or 3.92%—their third straight monthly gain.

India’s March quarter Gross Domestic Product (GDP) grew 7.9% to official data, its above economists' expectations of 7.5% growth. For the FY16, the country’s GDP grew by 7.6% compared to the previous year, and higher than the previous quarter’s 7.2% growth, which has been revised down from the 7.3% estimated earlier. The impressive growth was mostly attributed to good performance by the manufacturing and farm sectors.

US stocks closed mostly lower, on Tuesday, as investors turned cautious ahead of key economic data releases this week. The Dow Jones Industrial Average closed 86.09 points, or 0.5%, lower at 17,787.13. The S&P 500 closed down 2.11 points, or 0.1%, to 2,096.95. Meanwhile, the Nasdaq Composite was the only index to manage a daily gain, closing up 14.55 points, or 0.3%, at 4,948.05.

European stocks broke a five-session winning run on Tuesday as investors pondered over key events ahead this week, including meetings of the European Central Bank and OPEC. The Stoxx Europe 600 index fell 0.8% to end at 347.45. Germany’s DAX 30 index shed 0.7% to end at 10,262.74, while France’s CAC 40 index gave up 0.5% to 4,505.62. The U.K.’s FTSE 100 index dropped 0.6% to end at 6,230.79.

Asian markets opened lower on Wednesday as crude oil extended declines and China's purchasing managers' index (PMI) data came in flat. Japan's Nikkei 225 index lost 0.53% as the yen firmed. Australia’s S&P/ASX 200 Index is down 0.93%, while New Zealand’s S&P/NZX 50 Index slipped 0.17% after climbing Tuesday to a record high. The Kospi index in Seoul reported flat. The Shanghai Composite was up 0.10% after hovering around the flat line.

On the domestic front, A SGX Nifty 50 index future for June series is trading up by 16.50 points at 8,205. Indian markets are likely to open in green on strong GDP data. Investors and traders must keep an eye on the GDP data for fourth quarter and FY16 to be released Wednesday. Auto stocks would be in focus amid release of monthly sales figures from Wednesday.