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Global cues positive; will Nifty open at all-time highs?

A day after the Indian equity markets surged to all-time highs, Nifty is likely to open trade in the green today. The SGX Nifty, an indicator of the market opening, was trading at 8731, up 22 points at 7:20.

The markets scaled to all-time highs on Tuesday among growing perception that India is the best placed among emerging markets because of its improving macro economic fundamentals.

The 50-share Nifty closed at 8695.60, up 144.90 points or 1.69 percent after hitting a new high of 8,707.90 intraday.

The 30-share Sensex hit a new peak of 28829.29, before closing at 28784.67, up 522.66 points or 1.85 percent over its previous close, rising for the fourth consecutive day.
The broader markets underperformed benchmarks with BSE Midcap and Smallcap indices rising 0.4 percent each.

Global cues, meanwhile, are positive with US markets ending trade with marginal gains in volatile trade. European markets too closed with modest gains ahead of the European Central Bank policy meet. And Asian markets traded mixed in morning trade.

In other asset classes, Nymex crude was trading at sub-USD 47 per barrel amid worries over ample supplies and sluggish demand after the International Monetary Fund cut its 2015 global economic forecast. Brent is trading at USD 48 dollars per barrel.

In the currency space, the yen nurses broad losses as investors sold the Japanese currency in a precautionary move against any further policy easing by the Bank of Japan.

And from the precious metals space, gold rose to USD 1290 dollars an ounce to a 4-and-a-half month high as uncertainty over the extent of a stimulus program the ECB is expected to unveil on Thursday drove investors into assets seen as lower risk.

Back home, in key earnings to watch, fast moving consumer goods (FMCG) major ITC will report its third quarter numbers today. In a CNBC-TV18 poll, net sales may rise around 12 percent to USD 9,744 crore. The profit is expected to rise 12.6 percent while the company’s cigarette business may see sluggish volumes.  

Furthermore, the Jan Dhan Yojana is now a big success and over 99 percent of households now have a bank account, claims the government. The Direct Benefit Transfer scheme now covers 300 districts and over Rs 25,000 crore rupees of LPG subsidy will be transferred directly to bank accounts.

And the 45th annual meeting of the World Economic Forum kicks off at Davos today in Switzerland. It will be attended by 2500 delegates. The topic for this year is the “the global context”. The spotlight will be on the European Central Bank and the weakness in the euro zone economy.

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