Asian Indices Open Positive- India Likely To Follow Trend
DSIJ Intelligence / 30 Dec 2013
When we look back at the Indian equity markets, the 2013 remained highly volatile. However despite the volatility it provided returns of around 10%. The indices got some momentum off recent and we feel it would carry the same in the nest year also. That means we are expecting the last two trading sessions of the year 2013 to end on a positive note
Indian equity markets remained volatile for most of the year and so was the case with other emerging markets also. However, while the emerging markets struggled, the year belonged to the developed markets as the equity indices in most of the developed markets touched the multi year high levels. Be it the US, Europe or even Japan, the respective equity indices surged ahead making 2013 as one of the best years in the history in terms of returns.
When we look back at the Indian equity markets, the 2013 remained highly volatile. However despite the volatility it provided returns of around 10%. The indices got some momentum off recent and we feel it would carry the same in the nest year also. That means we are expecting the last two trading sessions of the year 2013 to end on a positive note.
The reason behind the same is quite clear. The Indian equity indices shrugged the negative news like QE taper. This clearly indicates towards the inherent strength in the markets. And with no negative news lined upon the global as well as domestic front, the Indices are likely to make an up-move on the last two trading sessions also.
There is another reason why we feel the Indian markets would remain positive. The Asian markets are trading in positive zone. The data from Bloomberg suggested that most Asian stocks climbed as Australian shares gained and Japanese indexes extended rallies after the yen touched a five-year low versus the dollar.
There are certain other data points also. Chinese Premier Li Keqiang said the nation has the conditions to keep the economy and its financial markets stable in 2014, according to a statement on the government’s website posted yesterday. The country will implement a prudent monetary policy and maintain “appropriate liquidity,” Li said during a visit to Tianjin.The data from US was also positive over the weekend. The reports showed that data from durable goods to housing and employment fueled optimism that the world’s largest economy is strengthening.
No wonder the equity Indices in Asian markets are trading in green. While the Nikkei is up 0.34%, Hang Seng is Up 0.30%. Shanghai Composite is also trading in green with marginal gain of 0.18%.
As for the Indian markets, SGX Nifty is trading in positive with gains of 11 points (Up 0.20%). Hence with no other major triggers at current levels, we expect the Indian markets to open an o flat note. However, we expect the usually illiquid stocks to remain in limelight today. This sort of trade occurs at the end of year as the global fund managers try to garner better returns. All in all, the Indian equity indices are likely to open on a flat note and then remain in positive zone throughout the session.
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