Markets may take a breather after two days of rally

Indian markets are likely to open soft as they might take a breather after a strong rally posted in the last two trading sessions. The SGX Nifty is trading with modest loss of 18 points at 10,452 indicating a soft start.  

Asian stock indices were lacklustre in early deals on Wednesday after the US benchmark indices dipped. Hong Kong’s Hang Seng has added 14 points, Japan’s Nikkei 225 has dipped 15 points and China’s Shanghai Composite has slid 11 points. 

Back home, markets extended gains after assembly election results of Gujarat and Himachal Pradesh. The BJP has reinforced its strength and enhanced its odds in the forthcoming general elections in 2019. The broader indices depicted strength with Nifty Mid-Cap and Small-Cap indices surging 1.45% and 1.31%, respectively. Sector-wise, Nifty Auto rose 3.48% and emerged as a top gainer. At the closing bell, Nifty surged 74 points to close at 10,463 and the BSE Sensex gained 235 points to settle at 33,837.   

The US stock market indices ended the Tuesday’s session with modest losses as the Republican Party’s landmark tax plan hit a hitch. Within hours of passing the greatest overhaul of the US taxes in a generation,  the House of Representatives stated that it would need to vote for a second time. The Dow Jones Industrial Average slipped 37 points to close at 24,755, Nasdaq shed 31 points to finish at 6,964 and the S&P 500 dipped 9 points to end at 2,681.  

Majority of the European stocks closed in the red on Tuesday. The DAX of Germany fell 0.73%, CAC 40 of France lost 0.70% and rhe FTSE 100 of the U.K. added 0.09%.