Positive start likely amid helpful cues from Asian peers

In early action, the SGX Nifty is seen trading marginally up and helping the sentiments are positive cues from the Asian peers. At the time of writing, SGX Nifty was up by 12 points at 11,574 level and this suggests that the markets may make a flat to positive start to the day. However, the million dollar question is: Will the markets stage a remarkable rebound in today’s session? Considering the sentiments among the Asian peers, we believe a slight rebound is quite likely for the markets amidst bargain hunting. But the bulls might face sell-off on every rise until and unless Nifty manages to sustain above the 11,625 mark.  

A majority of the Asian markets are trading in the green on Wednesday. The Japanese stock index Nikkei 225 has added 0.01 per cent, Hong Kong’s Hang Seng has surged 0.55 per cent, while China’s Shanghai Composite is trading flat.

Back home, key benchmark indices ended Tuesday’s session on a flat note as, after an initial setback, benchmark indices pared almost all of their losses. In the end, BSE Sensex closed at 38,730, up by 0.03 per cent, and Nifty settled at 11,556, down 0.02 per cent. The broader market indices put up a decent performance with Nifty Midcap and Smallcap adding 0.36 per cent and 0.39 per cent, respectively. Talking about the sectoral performance, a majority of the sectors ended in the red with Nifty FMCG and Nifty IT being the top losers and, on the flip side, Nifty Realty and Nifty Pharma being the top gainers. 

The US markets ended the session on a mixed note on Tuesday, but well off the day’s low, thanks to some late-day buying. The Dow Jones Industrial Average dipped 23 points, the tech-heavy Nasdaq Composite advanced 43 points and the S&P 500 gained 4 points. Market participants' attention would shift to the two-day Congressional monetary policy testimony from Federal Reserve Chairman Jerome Powell, which is due to start on Wednesday.

The European equities closed lower on Tuesday. Germany’s DAX dropped 0.85 per cent, France’s CAC 40 and UK’s FTSE 100 declined 0.31 per cent and 0.17 per cent, respectively.