Markets to open in green; expect a range bound day

Indian stock markets welcomed the rate cut decision by the central bank in its policy meeting on Tuesday, October 04. Easing of policy rates and a dovish tone from the RBI Governor were taken positively by the share markets as both the benchmark indices closed the late trading session with good gains. Nifty in the late trade surged past levels of 8750; whereas BSE Sensex closed above 28300 on October 04, supported by Oil & Gas and banking names.

European markets rallied on Tuesday, October 04 led by two major companies namely Deutsche Bank and Pearson. Both the stocks were biggest gainers in trade after encouraging comments from analysts. In an up trending market English FTSE and French CAC were the biggest beneficiaries as they out ranked their peers. Pound sterling collapsed to a 31-year low versus the U.S. dollar on Tuesday as concerns over UK’s separation from the EU were compounded.

US stock markets closed lower on Tuesday pressured by a rising dollar, while investors digested data from IMF on global economic growth. All the key indices closed with losses ranging from 0.2 to 0.50 per cent.

Asian markets seemed to be in an upbeat mood in today’s trading session as all the main benchmark indices gained in trade on Wednesday, October 5, 2016.

SGX Nifty is trading flat with upward bias to the levels of 8880. We expect markets to remain in the positive territory, tracking domestic cues as well as global peers.