Market Likely To Extend Rally

Indian equities market surged over 2 per cent on Monday, posting their second biggest gain of the year as inventors sensed diminishing chances of the Fed rate hike in the near future after a weak US jobs report. The Sensex ended up 564.60 points or 2.1% at 26785.55 and the Nifty surged past the psychological 8,000 level, was up 168.40 points or 2.1% at 8119.30. The BSE Mid-Cap and the BSE Small-Cap index rose 1.79% and 1.62% respectively. Both these indices underperformed the Sensex. The rupee ended at 65.28 per dollar, its highest level in over a month, further boosting the sentiment in domestic markets.

U.S. stocks closed more than 1.5% higher Monday after last week's gloomy jobs report led investors to expect that the Federal Reserve will wait even longer before making its first interest rate increase since the financial crisis and awaited quarterly earnings. The Nasdaq composite jumped back into positive territory for the calendar year on its 1.6% gain, a climb of 73 points. The S&P 500 rose for a fifth session in a row and rose 35.69 points, or 1.8%, to 1,987.05. The Dow Jones Industrial Average added 304.06 points, or 1.9%, to 16,776.43. Both the Dow and S&P 500 remain in the red for 2015, even after powerful gain on Monday.

European shares also shot up. The broad STOXX Europe 600 index was 2.9% higher. Local stock markets also gained. The CAC 40 in Paris surged 3.6%, the DAX in Germany jumped 2.7% and London's FTSE 100 shot up 2.8%.

U.S. crude gained 72 cents to close at USD 46.26 a barrel in New York. Brent Crude, a benchmark for international oils used by many U.S. refineries, rose USD 1.12 to close at USD 49.25 a barrel in London.

Asian equities extended gains into a second session on Tuesday following another U.S. rally and signs of some stability in oil and commodity markets boosted Asian stocks on Tuesday. Markets in China remain closed until Wednesday for National Day holidays. Japan’s NIKKEI 225 index headed for its longest rally since the start of August, increasing 1.5% fifth session in a row. Australia's benchmark S&P ASX 200 jumped to a near one-month peak, extending gains after Monday's 0.82% boost, despite weak economic data. South Korean shares rose 0.5% to their strongest level since August 11 after closing at a more than two-week high in the previous session. The benchmark Hang Seng Index breached 22,000 points in early trade, hitting a more than two-week high, climbs 0.72%.

A SGX CNX Nifty Index future for October delivery was up 56 points at 8,196. Indian market is likely to open in green on positive global cues.