Taking Cues From Asian Peers, Indian Markets To Open in Green

The Indian markets are likely to open on a positive note taking cues from its Asian peers. The Asian equity indices have opened marginally upwards after faster-than- forecast US employment growth bolstered optimism in the world’s largest economy. Apart from that the US job data the European Markets had also closed in green with significant gains. Just to quantify, on Friday May 3rd 2013 S&P closed at 1614.42 (up 1.05 per cent) and the Dow closed at 14973 up by almost one per cent. Even the European markets had witnessed a positive move on Friday May 3rd 2013. After a quite start and range-bound trade till the afternoon session, FTSE closed at 6521.26 (up 0.94 per cent), DAX closed at 8122 (up 2.02 percent) and CAC 40 closed at 3193 (up 1.40 per cent).

As regards the Indian equities after the RBI policy announcement on the Friday May 3, 2013, the leading indices initially witnessed a sharp sell-off. Though the indices managed to put in some recovery after words, the volatility kept the traders on their toes. But at end of the trading session the Sensex closed in negative zone at 19575 (down 0.81 per cent). Today, the Asian markets have opened in green and are showing some positive signs. While Shanghai Composite is up 0.42 per cent trading at 2214.72, Hang Seng is also up by 0.87 per cent at 22886. Even the other indices like KLSE Composite, Taiwan and KOSPI are up with marginal gains.

In addition to above the Moody’s has stated that the Indian sovereign outlook is stable and they look at 6 per cent GDP growth in current fiscal. As a result the Indian sovereign rating does not warrant any action in the next 12-18 months. This seems to be positive news for the Indian markets. SGX Nifty is trading at 5986 (up 32 points) and we expect similar kind of movement in when the Indian indices start trading today.