Markets likely to witness cautious opening

The key benchmark indices logged handsome returns on Wednesday, led by buying in index heavyweights like Reliance Industries, HDFC and HDFC Bank. The BSE Sensex surged 258 points to finish at 31,647 and the Nifty rose 88 points to settle at 9,884. The broader market ended the day on a robust note, outperforming the benchmark indices.

The European markets bounced back on Wednesday as geopolitical concerns eased. The DAX of Germany rose 0.47% and the CAC 40 of France climbed 0.49%. The FTSE 100 of the UK rose 0.38%.
 
The US’ stocks ended Wednesday’s session in the green with tech-laden Nasdaq Composite index outperforming the other benchmarks as the biotechnology sector posted strong gains. The Nasdaq Composite index surged 66 points to settle at 6,368. The Dow Jones Industrial Average advanced 27 points to close at 21,892. The S&P 500 index inched up 11 points to 2,458.

A majority of the Asian indices have opened on a weak note on Thursday. Hong Kong’s Hang Seng has lost 149 points and China’s Shanghai Composite has slipped 4 points. Bucking the trend, Japan’s Nikkei 225 has gained 136 points
 
The local market is likely to see a cautious opening on the back of weak trading among Asian peers and the August series F&O expiry is likely to keep the markets volatile. The SGX Nifty was trading at 9,860, down by 20 points, suggesting a cautious opening for the day.