Markets Likely To Open Positive On Firm Global Cues

Indian equities remained strong in the preceding week and extending gains for fifth straight week, stock specific actions sparked by a smart rally in banking and capital goods sector lifted both benchmark indices managed to break previous all time high levels. The benchmark Sensex was up by 1.02% i.e. 287.97 points in the week and closed at 28,334.63. Nifty also spurred by 87.45 points i.e. 1.04%, to finish at record level of 8,477.35, and it also hit lifetime intra-day high of 8,489.80 during the week. Last week saw the Indian market trade in a range till Thursday, but Friday witnessed a breakout on the merger announcement of ING Vyasa with Kotak Mahindra Bank. China's central bank announced to injected funds to ease a shortage of cash in the financial system.

The small-cap and mid-cap spaces, however, didn’t share the same enthusiasm, with the BSE Mid-Cap index rose 40.98 points i.e. 0.4% to settle at 10,195.79 and Small-Cap index advanced 108.45 points i.e. 0.96% to settle at 11,325.84.

Globally, Wall Street recorded their fifth consecutive week of gains, their longest streak in more than two months, as a strong third-quarter earnings season, on top of a recent string of positive U.S. economic data on housing, jobs and manufacturing, have helped put investors in a buying mood. Last week the S&P 500 climbed 1.1% over the week to 2,062.65, a new record closing high, while the Dow Jones Industrial Average jumped 175 points (1%) to 17,810.06. Gains on Friday marked the S&P 500's 45th record close of the year, the same number of record closing highs hit in all of 2013. The Nasdaq Composite index rose 24 (0.5%) to 4712.97.

On Friday, China's central bank announced a surprising interest rate cut on its one year loans to financial institutions by 40bps to 5.6% which is the first time in more than two years. Meanwhile, European Central Bank president Mario Draghi, further boosted global investors’ confidence by saying that the bank is willing to "step up the pressure" and increase its efforts to stimulate Europe's struggling economy.

Therefore European markets rallied on above news: Britain's FTSE jumped 1.1% to 6750.76, Germany's DAX index rallied 2.6% to 9732.55, France's CAC 40 gained 2.7% to 4347.23 and Euro STOXX 50 surged 2.97% to 3,194.22, leaving them on course for weekly gains of 1.45%, 5.2%, 3.45% and 4.39% respectively.

In Japan, markets are closed for holiday, but MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.24%. Australia's main index climbed 0.9%. China’s stock-index open in green after the central bank cut benchmark interest rates for the first time since July 2012. Currently, the Shanghai Composite Index climbed 1.70% to 2,529 and Hong Kong’s Hang Seng Index advanced 1.94% to 23,892.

Winter session of Parliament beginning from today to unveil a slew of reform measures especially GST, land act and insurance bill where market is holding high expectation. It will continue till Dec 23 and will have 22 sittings. Market may remain volatile in the week ahead of F&O expiry on Thursday, 27 November 2014. Investors' focus will remain on Q2 September 2014 GDP data set to be announced by the government at 5.00 pm on Friday, 28 November 2014. GDP grew 5.7% in Q1 June 2014 over the same quarter of the previous year. The SGX Nifty is open with green with up by 0.64%. Today we expect Indian equities open positive on global cues and going forward may see volatile during a week ahead of F&O expiry.