Markets may open negative but recover and continue with the prior upswing

Indian markets witnessed a short covering and recovered to the extent of closing nearly 1 per cent up. Exuberant upswing in SBIN despite of not so good results pulled the markets upwards. On the whole PSU Banking sector surged 5 per cent driven by Bank of India and SBIN.

US markets closed making record highs with the rise in Oil prices. Democratic nominee Hillary Clinton's lead in the polls over her GOP counterpart, Donald Trump might have added to the positive sentiments. All the major indices closed marginally higher where Dow remained 0.32 per cent up and S&P500 rose 0.28 per cent. Nasdaq gained 0.56 per cent.

European markets ended flat to positive despite of positive closure from the Wall Street. Worse than expected performance from the industry sectors offset the positive global cues. DAX closed up by 0.24 per cent while CAC40 lagged 0.05 per cent. FTSE100 continued to remain upbeat to close 0.36 per cent higher.

Tracking last week’s positive closure from the US, Asian markets opened on a positive note. China stocks had just hit 7 months higher where investors expected that disappointing Chinese data would persuade monetary easing. However, markets gave up opening gains where Nikkei 225 is 0.25 per cent down. Hang Seng is flat. China’s Shanghai Composite remains negative with 0.25 per cent losses. Australia’s S&P/ASX 200 Index is flat to negative with 0.09 per cent loss. New Zealand’s S&P/NZX 50 is 0.42 per cent down. South Korea’s KOSPI is flat.

The WPI inflation data and monsoon may drive the markets in coming days. Tracking the last moment retreat in the previous week, markets may open on a negative note but recover in case of a support. SGX Nifty is flat to negative at 8708.