Markets to Open Flat on Tuesday Morning

Markets cheered the constructive budget and surged on the bourses. The NSE Nifty closed at 8957 with 55 points gain and the BSE Sensex advanced by 98 points to 29459 on Monday. The midcap and small cap stocks clearly outperformed the blue chips and the midcap and small cap indices on BSE were surged by 1.31 and 0.93 per cent respectively. The capital goods and banking stocks showed good buying interest and the respective indices on BSE were closed strong up by 3.58 and 1.81 per cent. 

On European front, the European stocks closed lower after surging to multi-year highs earlier in the trading session. The most of the European markets post best monthly gain in a year. The investors are now keenly looking at European Central Bank’s meeting on Thursday and the US jobs data on coming Friday. The French stock market index CAC 40 closed lower by 0.69 per cent at 4917. The German stock market index DAX closed flat at 11410, gained by 0.08 per cent during the yesterday’s trading session. The UK FTSE closed at 6941, marginal down by 0.09 per cent.

The US stocks opened with a positive note on Monday lifting the Nasdaq index above 5000, a level not reached since 2000. The S&P 500 and the Dow Jones too surged to their record highs. The surge in the market was despite of marginal disappointing data for manufacturing activity. Further, the data showed that though the consumer spending in January fell more than expected, the savings rate rose for the Americans. The Nasdaq closed at 15 year high of 5008, up by 0.90 per cent. The S&P 500 and Dow industrials closed at 2117 and 18289, up by 0.61 and 0.86 per cent respectively. 

Today morning, the Asian markets were trading flat. The Hong Kong stocks seesaw between small gains and losses after good gains triggered by the Chinese central bank’s interest rate cut. The Hang Seng index was trading at 24870, marginal downy by 0.07 per cent. The Japanese stocks were too trading marginal down despite of weaker yen. The Nikkei 225 was trading at 18792, marginal down by 0.19 per cent. Australian stocks were trading higher and the ASX 200 advanced by 0.13 per cent ahead of a closely watched policy decision from the central bank due later in the day. 

The SGX Nifty was trading marginal down by 5.50 points at 8998 on early Tuesday morning. We too expect the market to open flat after good surge on yesterday.