Markets may extend the rally further on positive global cues

Indian markets are likely to continue with their upmove on Friday as global cues are positive. Nifty 50 index future on the Singapore stock exchange is currently trading higher by 22 points at 11,044. The two key data announced yesterday post the market hours left a lot be desired. The IIP for the month of May came in sharply lower at 3.2%, which is the slowest in the last seven months, while retail inflation jumped to 5%, which could once again make a case for further rate hikes by the RBI. Infosys will be in focus as it is due to announce its quarterly earnings today.  

Most of the Asian markets, barring China’s Shanghai Composite, were trading higher on Friday tracking positive leads from the Wall Street. Japan’s Nikkei 225 index has climbed 1.34% and Hong Kong’s Hang Seng Index has risen 0.59%, while China’s Shanghai Composite has declined 0.29%.  

Back home, the equity benchmarks extended their northward journey for the fifth straight session, with BSE Sensex hitting a new life-time high and the Nifty closing above its crucial 11,000-mark. The rally was mainly led by solid gains in index bellwether Reliance Industries, which surged over 4 per cent and it became the second Indian company after TCS to enter the S100B market cap club. The broader market indices, Nifty Mid-cap and Small-cap, underperformed the benchmarks to close with losses of 0.44% and 0.18%, respectively. On the sectoral front, Nifty PSU Bank and Nifty Fin Service were top gainers, while Nifty Realty and Nifty Media emerged top losers.  

The US stocks rallied on Thursday as optimism crept back into the market amid reports that officials from the US and China are working to resume trade negotiations to ease tensions. The tech-laden Nasdaq Composite Index outperformed its counterparts, climbing 107 points to a new record closing high of 7,824. The Dow Jones Industrial Average jumped 225 points to end the day at 24,925 and the S&P 500 rose 24 points to finish at 2,798. Going ahead, market participants will take cues from the upcoming earnings season, with several leading financial companies due to announce their quarterly earnings on Friday.  

The European markets ended Thursday’s session in the green as concerns over the trade war between the world’s biggest economies eased after reports suggested that the two sides will come together for talks to resolve the trade dispute. The DAX of Germany gained 0.61%, CAC 40 of France surged 0.97% and UK’s FTSE 100 soared 0.78%.