Positive global cues may see markets opening in the green

Indian markets are expected to open higher on the back of positive global cues. Traders will also keenly await the release of WPI data. The SGX Nifty indicates that the Nifty could open with gains of 81 points around 10,544 at the opening bell.  

Major Asian indices notched up gains on Thursday, taking leads from the stronger overnight close on the Wall Street. The Chinese markets are closed for the Lunar New Year holiday. The Japanese stock markets are trading higher, despite fresh gains by the yen. The Nikkei index was up by 1.36%. Hong Kong’s benchmark Hang Seng index has climbed 1.35%.  

Back home, frontline indices witnessed a gap-up opening, but the early leads were very short-lived, as thereafter, the markets oscillated in a narrow range. But intense selling pressure in the last hour of trade resulted into a tailspin. The PSU Banks were the main culprits of the fall, especially the PNB as the stock plunged about 10% during the day after news of fraudulent and unauthorised transaction worth about Rs 1.13 trillion hit media headlines. The broader indices ended the session on a mixed note as Nifty Mid-cap ended flat, while the Nifty Small-cap lost 0.68%.   

The US stock markets initially moved lower after the release of the much-anticipated US inflation data, which came in above expectation. The consumer price index jumped 0.5% in January, the biggest increase in five months. However, markets recovered from the lower levels and extended gains to finish higher for a fourth consecutive session on Wednesday. The Dow Jones surged 255 points to close at 24,896, S&P 500 rose 35 points to finish at 2,698 and the Nasdaq soared 130 points to settle at 7,144.  

It was a roller-coaster ride for the European markets on Wednesday after a prosperous start on the back of solid GDP data from Germany and the Eurozone. The markets gave up the initial leads and slipped lower as the US inflation data send jitters amongst the market participants. However a quick recovery was seen and markets climbed into positive territory. Germany’s DAX gained 1.17%, CAC 40 of France climbed 1.10%, while FTSE 100 of the UK ended higher by 0.64%.