Markets likely to start on a positive note on strong global cues

Today, the markets are likely to start in the green on supportive global cues. The SGX Nifty is trading with gains of 16 points at 10,417 indicating an optimistic start at the opening bell.   

Asian stock markets are up in early morning trade on Tuesday after record high closing on Wall Street. Hong Kong’s Hang Seng has climbed 181 points, Japan’s Nikkei 225 has added 8 points and China’s Shanghai Composite has risen 9 points. 

Back home, markets had slumped in early trade after early trend of Gujarat assembly results showed a neck-to-neck fight between the BJP and rival Congress party. However, a V-shaped recovery was seen as BJP crossed simple majority mark in Gujarat. Both the Nifty and Sensex gained for the third straight day. Buying was seen in the broader indices as well, with the Nifty Mid-Cap and Small-Cap index gaining 0.84% and 0.21%, respectively. Sector-wise, Nifty PSU emerged as a top gainer as it surged 2.35%, followed by Nifty Metal and Nifty Pharma.  

On Wall Street, major indices reached new record closing highs on Monday on growing expectation that tax cut legislation would be passed this week. The Dow Jones Industrial Average gained 140 points to close at 23,792, S&P 500 rose 15 points to finish at 2,690 and the Nasdaq Composite Index climbed 58 points to end the day at 6,995.   

The European indices ended the first day of the new week in the green territory. The DAX of Germany rose 1.59%, CAC 40 of France jumped 1.33% and FTSE 100 of the UK advanced 0.62%.