Markets to open negative; SBI to lead further move

Tracking strong global cues, Indian markets bounced back post two straight downbeats. Nifty retained 8650 and closed at 8673; and Sensex closed above 28000 mark. However, benchmark indices still maintain consolidation, while broader markets hit record highs. Bank Nifty too broke out to make a new 52 week high at 19367.

US markets closed higher, where Dollar hit 8 week low and depreciated against major currencies tracking the minutes of FED meet. Oil prices surged to six week high prices with falling Dollar. Brent gained 2 per cent at 50.82 USD/barrel. All the major indices closed marginally higher, where Dow remained 0.13 per cent up and S&P500 and Nasdaq gained 0.22 per cent each.

European markets followed in the footsteps and ended higher, where the rise in commodity prices boosted the sentiments, specifically of the mining stocks. DAX closed up by 0.62 per cent, while CAC40 closed higher by 0.44 per cent. FTSE100 closed 0.13 per cent up.

Asian markets are trading mostly lower, where Nikkei 225 is volatile with 0.15 per cent down move. Hang Seng is marginally down with 0.36 per cent losses and China’s Shanghai Composite remains negative with 0.25 per cent losses. Australia’s S&P/ASX 200 Index is flat. New Zealand’s S&P/NZX 50 is 0.12 per cent up at 7393 hitting a new record high. South Korea’s KOSPI is down by 0.24 per cent.

On Aug 18, SBI approved the much talked about merger of its operations with its 5 associate banks, after-market hours. The markets will react to the news in the opening session. SGX Nifty is flat to negative at 8668. RBL Bank's IPO will open on Aug 19 which is to be looked out for.