Markets May Open Flat With Positive Bias

The Indian markets may continue to open on positive note ahead in line with the global cues. The SGX Nifty is up by 13.50 points at 5,368, indicating a positive gap up opening to the markets today. The Asian markets too have opened on a positive note ahead of the Chinese economic data that is to be announced today.

The Asian markets too closed in the green with marginal gains. The optimism over ECB’s proposed stimulus measures continues to fuel the sentiments of the investors who are now hopeful of the Chinese economic data that will be announced today. Major Asian indices such as Hang Seng, Nikkei and Shanghai closed higher in the range of 0.4-0.8 per cent each.

Overnight, the U.S. stock market managed to continue its four-day rally and closed with marginal gains. The European stocks ended on a flat positive note yesterday for the fourth consecutive day in a row. However, the markets seem to trade in a range-bound manner as investors took a cautious view over the ECB’s actions required to boost growth in the economy. According to Bloomberg, Europe’s top shares rallied by 7.4 percent, partly on hopes of the central bank’s stimulus measures since ECB’s president Mario Draghi had assured late last month to do what it takes to preserve the euro.

On the Indian turf the rupee has gained further strength against the dollar and closed near the Rs 55.14 level. However, it continues to be above the comfort zone and remains a cause for concern for companies and government agencies that are dependent on imports. Meanwhile, with a positive slew of data coming from the U.S. region, the London Brent crude oil price is continuously inching higher to levels touching its two-month high of USD 111.22 per barrel.

In conclusion, for today we expect the markets to operate on a positive bias on the back of positive global cues. The appointment of the new finance minister has raised strong hopes among Indian investors which may keep the markets buoyant. Also, the global markets are looking quite stable for the moment. The Asian markets too have opened on a positive and steady note today, extending steep gains made in the previous session with investors treading lightly ahead of a slew of economic data from China and an interest-rate decision from the Bank of Japan that will further decide the direction of the markets.