The Indian equity market is expected to open smartly in the green a day after the 50-share NSE Nifty closed above 8700 for the first time. The SGX Nifty, an indicator of the market opening, was trading at 8768.50, up 25 points at 7:25 am.
The 50-share NSE Nifty closed above the 8700-mark for the first time ever, up 33.90 points or 0.39 percent at 8729.50. The 30-share BSE Sensex hit an intraday high of 28958.10, before closing at 28888.86, up 104.19 points. Benchmarks gained 452 points and 1542 points in the five consecutive sessions, respectively.
Global cues are positive with the US stocks gaining for the third straight day marking the longest win streak of 2015 as investors largely accepted the view that the European Central Bank (ECB) would implement a large-scale bond-purchasing program.
European markets too closed higher over news that the ECB is set to buy around 50 billion euros per month of government bonds for around a year.
Japan’s Nikkei is the lone market that is trading with a mild negative bias while the rest of Asia is well in the green on a positive global handover.
In other asset classes, the Canadian Dollar languished at its lowest in nearly six years early on Thursday, having suffered a massive drop after the bank of Canada stunned markets by cutting interest rates. The euro is firm around 1.15 ahead of the ECB action.
In commodities, Nymex Crude futures fell more than 1 percent , giving up almost half the gains from the previous session, this after OPEC defended its decision not to intervene to stop a collapse in oil prices since the middle of last year.
And precious metal gold slipped below USD 1300 an ounce hurt by profit-taking ahead of a key ECB meeting.
From the earnings corner, Cairn India will be reporting its third quarter numbers today. According to a CNBC-TV18 poll, revenues are seen down 16 percent at Rs 3,350 crore while profits may decline 40 percent. The average realisation is seen at USD 70 per barrel.
Furthermore, the ECB is the major talking point at the World Economic Forum with renowned economists believing that stimulus measures will be unleashed on Friday to stave off the deflation threat.
And India has taken centre stage as the WEF begins in Davos. Uday Kotak, Executive VC and MD, Kotak Mahindra Bank says Finance Minister Arun Jaitley should plan its Budget keeping oil prices at USD 60 to 70 per barrel. He has also cautioned India Inc against over-exuberance.