Markets to open in green; GST council meet outcome eyed

Indian markets witnessed a stupendous rally on Tuesday, October 18 on strong global cues and developments related to GST council meet. Primarily the rally was driven by short covering and buying at lower levels as stocks appeared cheap at such valuations. Benchmark indices closed sharply higher. Nifty managed to close higher to the levels of 8675; whereas BSE Sensex passed important 28000 level on Tuesday.

European stock markets closed higher in trade on Tuesday, October 18 courtesy higher commodity prices and better than expected corporate earnings. All the major indices closed down in the range of 0.75 to 1.45 per cent with Spanish IBEX and French CAC being the biggest gainers in the region.

US stocks moved higher in trade given better than expected quarterly results on Tuesday. Major benchmark indices gained close to a per cent in trade with NASDAQ Composite leading the gainers list with 0.85 per cent increase.

Asian shares gained in trade owing to a slew of economic data emerging out of the Chinese economy. China posted a GDP growth rate of 6.7 per cent in Q3. Cheering the news, major Asian indices were trading with profit of close to quarter of per cent on Wednesday, October 19, 2016.

SGX Nifty is trading with gains of 0.15 per cent to the levels of 8680. We expect markets to open slightly higher and consolidate at these levels. However, GST council meet will be closely tracked.