Nifty May Open Gap Up

A benchmark index of Indian equities markets ended lower for the fifth straight day after earlier falling by more than 1%. The Sensex fell more than 300 points and Nifty tanked below the 8000 level (for the first time since January 28) in early trade, even the broader indices drop more than 2%. But indices immediately recovered more than half of the losses and then remained in a consolidation mode for rest of the session.

Yesterday, market was weak due to concerns about slowdown in global growth could reduce the pace of foreign inflows into emerging markets. The Sensex closed lower 71.31 points i.e. 0.27% at 26,710.13, while Nifty fell 37.80 points i.e. 0.47% to 8,029.80 points.

Globally, the U.S. stock market closed sharply higher on yesterday, after the U.S. Federal Reserve replaced the phrase "considerable time" in its policy statement with "patient," to basically let the market know that it isn't in a rush to hike short-term rates next year.

The S&P 500 and Dow Jones Industrial Average scored their best one-day gains of 2014 Wednesday and ended a three-day losing streak for the major indexes. The Dow rose 288.00 points (1.69%) to 17356.87. The S&P 500 advanced 40.15 points (2.04%) to 2012.89 and the Nasdaq Composite added 96.48 points (2.12%) to 4644.31.

European stock markets open with lower on yesterday after sharp gains the day before. Later on at a closing time it has shown recovery. Overall European stocks markets were mixed. Euro Stoxx 600 Index ticked higher to close up around 0.3%, following another volatile day of trading. London's FTSE closed 0.3% higher, Germany's DAX ended flat and the French CAC closed up around 0.46%.

Asian markets pushed higher today’s morning after the U.S. markets enjoyed their strongest session this year when the Federal Reserve sounded upbeat on the economy and promised to be patient in removing policy stimulus. The Topix added 2.7% to 1,387.98, headed for the biggest jump from last one and half months. The Nikkei 225 Stock Average surged 2.4% to 17,222.98. Hang Seng jumped 1.04%, while the Shanghai Composite Index trading at flat.

The SGX Nifty is open in positive by 90 points i.e. 1.1%. Today Indian market may open higher after the Federal Reserve pledged to be patient on raising interest rates.