Indian Markets Likely To Open On Positive Note

Past few weeks have been quite amazing for the global equity markets with the leading equity indices moving only one Way that is northward.  The basic reason behind the same has been the expectations of global growth have started to pick up. As a result the US as well as European markets have witnessed a smart rally and are trading at multiyear high. Supported by the strong macro economic data and some liquidity the Indices have extended the rally. In the past week S&P and Dow managed to sustain the all time high levels. In the European markets also the FTSE, DAX and CAC40 managed to close in green on Friday May 10, 2013. So the global scenario has been quite good and it needs to be seen how the Asian markets trade today.

As regards the Asian markets, there are some signs of easing with sentiment hit by selling in commodities triggered by a strong dollar, which rose to a fresh 4and half year peak against the yen on the back of growing confidence in the U.S. economy. The reports suggested that, U.S. labour market data has pointed to a steady recovery trend in the world's largest economy, boosting the dollar and fuelling speculation that the Federal Reserve could scale back its aggressive monetary stimulus aimed at supporting growth. This may come as a dampener in the Asian markets resulting in some profit booking happening soon. But we feel the impact will be limited with US as well as the European indices rallied on Friday May 10, 20130.

As expected the Shanghai Composite is Trading Marginally down 2244.15 (Down 0.12 %) and Hang Seng is marginally down at23144 (Down 0.76 %). However with weakness seen in Yen against the USD, Japanese Nikkei is up strongly by 1.43 % trading at 14816. 

As regards the Indian markets, after a good set of IIP numbers on Friday, on a special trading session on Saturday (May 11, 2013) the Sensex managed to close above the 20000 level.  While the Sensex closed at 20122 points Nifty closed at 6107. We are of the opinion that the Indian equity indices are likely to open in positive zone today. Even the SGX Nifty is trading at 6116, up by 12 points.  However some amount of profit booking may happen in the concluding sessions.