Markets may open in the green tracking strong global cues
Indian benchmark indices are likely to open the session with modest gains following strong leads from the Wall Street and optimism seen among the Asian peers. At the time of writing, the SGX Nifty was up by 11 points at 11,745. Market participants will keep a watch on Nikkei Manufacturing PMI for the month of March, which is due for release today.
Asian markets were seen advancing on Tuesday as global growth concerns eased and also following a strong rally on the Wall Street overnight. The Japanese stock market Nikkei has added 0.33 per cent and Hong Kong’s Hang Seng index has gained 0.34 per cent.
Back home, the markets kicked of the new financial year on a jubilant note and bulls were seen running in the top gear. Meanwhile, the BSE Sensex for the first time ever traded above the 39,000 mark and marked a fresh all-time high of 39,116, while the Nifty too was in the close vicinity of record high level. However, just when the traders/investors were celebrating this memorable movement, the bears sneaked in and played a perfect spoilsport as they dragged the index down and the markets erased a major portion of their gains. The Nifty settled at 11,669, up by 0.39 per cent, and the BSE Sensex rose 0.51 per cent to close at 38,872. The broader indices ended in the positive terrain with Nifty Midcap and Small-cap climbing 0.41 per cent and 0.98 per cent, respectively. Talking about the sectoral performance, a mixed trend was witnessed on the sectoral front wherein Nifty Metal, Nifty IT and Nifty PSU Bank ended as top gainers, while Nifty Realty and Nifty Media ended as top losers.
It was a perfect start to the second quarter on the Wall Street and it was just what the doctor ordered. The Dow and the Nasdaq ended the session at their best closing levels in about six months. The optimism on the Wall Street was seen amid easing of global growth concerns following stronger than expected US and Chinese manufacturing data and, additionally, the treasury yields rising above their recent lows, following a sharp drop last month that had spooked investors. On the US-China trade talk front, China will extend the deadline which would have seen new tariffs on the US-manufactured automobiles and auto parts being imposed from April 1. The Dow Jones Industrial Average surged 1.27 per cent, the tech-heavy Nasdaq Composite index climbed 1.29 per cent and the S&P 500 index advanced 1.16 per cent.
European stocks ended the Monday’s session firmly in the green despite the manufacturing sector across the 19-country Eurozone shrinking at its fastest rate in six years. The France’s CAC 40 gained 1.03 per cent, the DAX of Germany jumped 1.35 per cent and the UK’s FTSE 100 added 0.52 per cent.