The domestic markets seem to be waiting for bigger trigger such as union budget for its next move. The market closed flat on yesterday experiencing the volatile session ahead of the budget and expiry. The BSE Sensex regains its psychological level of 29000 and closed at 29005, with mere 30 points gain on the previous closing. While the FMCG and Capital goods stocks were pulling the market in green with respective indices gaining 1.45 and 1.09 per cent respectively, the Oil & Gas and Metal stocks were dragging the market with losses of 1.15 and 1.10 per cent in the respective indices. The small cap companies have seen some selling pressure and the small cap index closed losing 0.78 per cent.
European markets surged to new high of seven years after the European officials approved extension of the Greece’s bailout. Yesterday, the Euro zone finance ministers, the European Commission, the European Central Bank and the International Monetary Fund all had reviewed Greece’s list of economic reform proposals and approved the country’s request to extend its 240 billion euro bailout. Now the bailout request will now go to Euro zone governments to provide the final sign off.The French stock market index CAC 40 and the German stock market index DAX closed at seven year highs of 4886 and 11206, up by 0.50 and 0.67 per cent respectively during the yesterday’s trading session. Further, the UK FTSE closed at 15 year record high of 6950, up by 0.54 per cent.
On US front too, the Federal Reserve’s chairwomen Janet Yellen reassured that the rate hike might not occur until the second half of the year. The domestic optimism and taking positive cues from European markets, US stocks moved further higher and the S&P 500 and Dow industrials closed at record highs of 2116 and 18209 respectively. Interestingly, the Nasdaq closed in green for straight 10 trading sessions, near to its March 2000 peak. The previous longest winning streak was of 12 straight days in mid 2009.
On Wednesday morning, the Asian market too trading in positive taking positive cues from global markets. The Japanese market i.e. Nikkei 225 index was trading higher by 0.16 per cent at 18633. The Australian ASX 200 index was too trading higher by 0.10 per cent on global news flows. The Hong Kong shares were too trading on Wednesday morning and the Hang Seng index was marginal up by 0.29 per cent.
The SGX Nifty was trading higher by 24 points at 8797 in the morning. The markets are too expected to open strong on the bourses taking positive cues from global markets. However, the market may experience volatile trading session ahead of derivative expiry and the Railway budget, both scheduled on tomorrow.