Markets to open positive but will remain volatile ahead of RBI policy

Indian markets have completely recovered from three consecutive downbeats where Nifty closed above 8680; while Sensex regained 28000 mark. All sectors except IT closed in green. Auto sector lifted the indices where Bharat Forge surged 13 per cent amid positive earnings outlook from the management.

US markets yet again hit their record highs with robust labour market data where nonfarm payrolls rose by 2.55 lakhs in July against the expectations of 1.8 lakhs. Unemployment data remained unchanged at 4.9 per cent.

European markets continued to remain upbeat post rate cut by Bank of England and cued towards further lowering in coming reviews. DAX remained up by 1.36 per cent and CAC40 too closed up with 1.5 per cent gains. Moreover, FTSE100 jumped 0.8 per cent. UK sees worsening of economy with 1 per cent fall in housing prices in July that calls for rate cut.

Asian markets specifically Japan’s Nikkei 225 rose 2 per cent after Yen tumbled against Dollar on strong US payroll numbers that suggested economy to be in a good shape. Hang Seng surges with 1.3 per cent. However, China’s Shanghai Composite remains flat to negative with 0.15 per cent losses. Australia’s S&P/ASX 200 Index is 0.8 per cent up. New Zealand’s S&P/NZX 50 is 0.45 per cent up. South Korea’s KOSPI is 0.25 per cent up.

Indian markets reported their highest closure since more than a year. We expect markets to carry forward optimism in today’s session unless some unhealthy triggers with respect to RBI monetary policy announcement scheduled on Aug 9.  SGX Nifty is trading with 0.6 per cent upside at 8755 levels, which adds to the positive sentiments. Hero MotoCorp has its quarter results today which can be watched out.