Indian Markets May Open Higher
A benchmark index of Indian equities broken five days losing streak and have ended strong led by firm global cues and the cabinet approved a constitutional amendment bill on Wednesday to rationalize state and central indirect taxes into a harmonized goods and services tax (GST). The Sensex on yesterday recorded its biggest one and half month gain of 416 points to reclaim 27,000 mark and Nifty reclaimed 8,100 level by rising 129.50 points i.e. 1.61% to end at 8,159.30.
The Smallcap and Midcap indices too joined the rally. The BSE Midcap index recovered 2.66% and Smallcap index rose 3.28%.
Globally, the monster rally in the US stock markets on yesterday following the Federal Reserve's reassurance that it was in no hurry to raise interest rates. The Dow industrials climbing with second straight triple digit gain and its biggest one day gain in three years, soared 421 points (2.4%) to 17,778.15. The S&P 500 jumped 48.34 points (2.4%) to 2,061.23, its biggest one-day gain in nearly two years. The Nasdaq Composite jumped 104 points (2.2%) to 4,748, as technology companies recorded big gains.
The price of WTI oil fell USD 2.36 to close at USD 54.11 a barrel, after rising as high as USD 58.71 in intraday trading. Oil has plunged since June, when it peaked at USD 107 a barrel. Overproduction and weak demand are behind the fall in global oil prices. Brent crude, a benchmark for international oil, fell USD 1.91 to close at USD 59.27.
European shares surged on yesterday after an outcome of the US Federal Reserve policy meeting and rebound in Greek stocks. The leader of the main opposition party in Greece said he was committed to keeping Greece in the euro should his leftist party win power. The Stoxx Europe 600 Index rallied 3% to 339.05, Frankfurt’s DAX 30 soared 1.86% to 9,722.12 points and in Paris the CAC 40 rallied 2.27% to 4,205.41 compared with Wednesday’s close. FTSE 100 index jumped 0.94% to stand at 6,396.09 points.
Asian markets extend global rally on Fed today after Wall Street boasted its biggest two day advance since late 2011 amid relief the Federal Reserve was in no rush to start hiking interest rates. The Topix added 1.9% to 1,402.37 and the Nikkei 225 surged 1.94% to 17,543.45. Hang Seng jumped 1.34%, while the Shanghai Composite Index trading up 1.11%.
The SGX Nifty is also open in positive by 60 points i.e. 0.73%. Today Indian market may open higher and it will looks set for another upbeat session on Friday after the Federal Reserve pledged to be patient on raising interest rates and the implementation of the goods and service tax (GST) in India.