Markets to continue trending higher

The Indian markets witnessed a stellar rally, wherein both the benchmark indices touched their new 52 week highs, whereby Nifty closed above 8900 for the first time in 18 months; and Sensex also came near kissing distance of closing beyond 29000 on Sept 06. The rally was largely driven by Banks and Auto stocks.

European markets fell on Tuesday amid weak economic data emerging out of US. The markets saw a mild correction in the late afternoon session after the US ISM Services index dropped the most since the financial crisis. Major European indices like Euro Stoxx 50 Pr, FTSE 100 and CAC 40 saw a decline of 0.24; 0.78 and 0.24 per cent respectively.

US markets closed the trading session on a positive note on Tuesday supported by the view that Fed will hold off on rates. Major indices like Dow Jones, S&P 500 and NASDAQ all closed with the gains of 0.25; 0.30 and 0.50 per cent respectively.

Asian markets hit another 52 weeks' high on Wednesday as dollar tumbled in trade, courtesy weak US Services sector data, which further diluted the already bleak chances of a rate hike by the Fed. However, major Asian markets like Japanese Nikkei 225 and Hong Kong’s Hang Seng saw a decline in the range of 0.65 percent to 0.10 per cent. MSCI broader market index of Asia- Pacific shares rose for another day.

PSU oil majors are likely to remain in focus today as they present Q1 numbers. SGX Nifty is trading higher by 0.23 per cent to the levels of 8986. We expect markets to open with a green tick, tracking Asian peers.