Market likely to open in green
Indian equities indices rallied due to the good progress of monsoon rain, however trading volumes were thin due to continued concerns about the Brexit fallout. The S&P BSE Sensex closed 0.46%, or 121.59 points higher at 26,524.55; while the Nifty 50 closed 0.41%, or 33.15 points higher at 8,127.85. The broader markets also participated in the rally as the BSE Midcap and Smallcap indices were up 0.48% and 0.79% respectively. Indian rupee ended flat at 67.95 against dollar on Tuesday due to month-end dollar demand from banks and importers.
U.S. stocks gained more than 1.5% on Tuesday. Gains come after a brutal two-day rout in global equities was lifted by gains in oil prices, as investors looked for bargains after the Brexit sell-off. The Dow Jones industrial average ended up 269 points, or 1.6%. The broader S&P 500 stock index was up 1.8% and the Nasdaq composite surged 2.1%.
Crude oil gains over 3% after two-sessions of a Brexit-inspired tumble, as a potential strike in Norway and crisis in Venezuela threatened to cut supply. WTI crude climbed USD 1.52, or 3.3%, to settle at USD 47.85 a barrel, while Brent crude gained USD 1.42, or 3%, to USD 48.58 a barrel.
European stocks closed sharply higher Tuesday, getting a break after two back-to-back selloffs sparked by the U.K.’s Brexit vote. The Stoxx Europe 600 bounced up 2.6% to 316.70. Germany’s DAX 30 gained 1.9% to 9,447.28. France’s CAC 40 moved 2.6% higher to end at 4,088.85. The FTSE 100 tacked on 2.6% to end at 6,140.39.
Asian markets opened higher on Wednesday, following gains across U.S. and Europe on Tuesday. In Japan, the Nikkei 225 added 1.40%. South Korea’s Kospi index added 1.23%. Australia’s S&P/ASX 200 Index is higher at 0.64%. New Zealand’s S&P/NZX 50 Index is up 1.02%. China’s Shanghai composite has advanced 0.48%.
On the domestic front, A SGX Nifty 50 index future for June series is trading up by 32 points at 8,158. Indian markets are likely to open in green. However volatility in market may be seen due to F&O expiry on Thursday.