The Indian market is expected to open in green today with the SGX Nifty, an indicator of pre-market opening, up 30 points to 8389.50 (8:00 hrs) led by positive macros. India’s factories are back in business with the industrial output growing by 3.8 percent in November beating expectations. Retail inflation, however, accelerates but at a slower-than-expected pace of 5 percent.
A late rally lifts Nifty above 8,300 in volatile trade yesterday, supported by banks and capital goods stocks. The rally in European markets also aided an upside in Indian equities.
The 30-share BSE Sensex rose 127 points to 27585 and the 50-share NSE Nifty climbed 39 points to 8323, continuing uptrend for the third consecutive session. The broader markets outperformed with the BSE Midcap and Smallcap indices gaining 0.6-0.8 percent.
Among global markets, stocks declined in the US, extending a two-week slide, as worries about the falling price of oil took hold before the start of quarterly earnings. The CBOE volatility index jumped nearly 12 percent to 19.60. Alcoa reported fourth-quarter results. The aluminum producer gained in after-hours trading after delivering earnings and revenue that beat estimates.
In Europe, shares regained some ground, ending in positive territory as speculation on further stimulus from the European Central Bank boost sentiment, even as the oil price continued to tank.
And in Asia, stocks are seeing selling pressure this morning on weak US lead. Japanese markets are trading near one-week lows after being shut for a holiday on Monday.
Data released before the open showed Japan’s current account recording a surplus for the fifth straight month in November lifted by a rise in income from overseas investment on the back of a soft yen.
In the currency space, the dollar falls against the yen in volatile trading, pressured by weakness in US stocks as the currency’s positive outlook was somewhat diminished by surprisingly weak US wage data on Friday.
In commodities, Brent dropped below USD 48 per barrel and Nymex crude slipped to trade at around USD 45 after analysts at Goldman’s lowered their three-month price forecast for Brent to USD 42 per barrel from USD 80 and cut Nymex crude to USD 41 from USD 70 per barrel.
From precious metals space, gold gains as dollar slips with investor sentiment boosted by shifting expectations on when US interest rates may rise.