Good Times To Continue, Markets To Open Positive

The bears danced briefly on budget day, but the bulls came back the next day and seem to be having a ball since then. With the global environment much in favour of the bulls, there seems to be nothing which can stop the market at least for now. Macro worries have been brushed aside by almost all markets across the globe and the focus remains on the driving aboard the positive sentiment that is in place.

European markets continued with their climb backed by strong US cues. After rising to multi-year highs, they however pulled back in late trading taking US factory orders data with a pinch of salt. All eyes are now on meetings of central bankers in the region. Expectations of a rate cut are fuelling speculative trades out there. It may keep those markets in a good shape at least for the time being.

In overnight trades, US stocks continued with their advance with the Dow hitting a fresh five-year high. Encouraging data from a report on private payroll growth helped the markets up yesterday. Easy money originating from the quantitative easing seems to be coming handy for the markets. Other macro perspectives are a matter of judgement but the money flow or liquidity as you may like to call it is a reality. This flow is not likely to ebb any time soon in future and hence markets are likely to do well, provided there is no negative into it.

Asian markets this morning are a mixed bag.  Japan as continues with its upward march and is seen trading up almost half a per cent today. Taiwan, Singapore, Malaysia and Indonesia too are following suit. The strength of the gains registered by these markets is however not much. Hong Kong and China are trading in the red thought the Chinese markets are only marginally on the losing end. The Central Banker seems to be the focal point almost everywhere. Japan awaits the BoJ’s decision on various policy matter, which is due later in the day. Why is China reeling? Well the real estate market in China has been facing some headwinds in the nature of restrictions posed on it by the government. This has been hitting property stocks listed on the bourses very badly and in turn the overall Chinese market.

Back home, after two days of a good rise, markets are slated to open on a positive note even today. As the day progresses there could be some profit booking on the cards but the overall sentiment is likely to remain largely positive. Encouraging developments including the clearance of the AirAsia entry into Indian skies by the FIPB as well as the proposal to allow listing of preference shares on the bourse to make money raising more easier for companies and banks will help keep the sentiment on the positive side. Right now, as has been mentioned earlier too, there are no macro factors that can drive the markets. All action continues to remain stock centric. All said, not a very exciting day ahead so to say but the positivity remains unimpaired. The SGX Nifty is trading in the red, but it has many times foxed investors and could probably do so even today. The bottomline – a green open and a positive bias.