The US markets achieved another milestone on Wednesday with the S&P 500 closing double it post-crisis low of 666.79, which it touched in March 2009. Tracking the US, most markets in Asia were higher in early trade today
The local market is likely to see a flat-to-positive opening after the two-day consolidation kept the market in a tight range. Post-close yesterday, news of ADAG chairman Anil Ambani being questioned by the CBI in connection with the 2G spectrum scam is expected to impact the group’s stocks today. Besides, the weekly food inflation figures might give it some direction as the day progresses. On the global front, the US markets achieved another milestone on Wednesday with the S&P 500 closing double it post-crisis low of 666.79, which it touched in March 2009. Most Asian markets were in the green in morning trade on Thursday, tracking the US markets that closed higher overnight. The SGX Nifty was down 14 points at 5,480 against its previous close of 5,494 on Wednesday.
On Wednesday the market witnessed a listless opening on the back of subdued cues from the global arena. Trade lacked momentum as the key indices hovered on both sides of the neutral line and remained range-bound for most part of the morning. With prime minister Manmohan Singh's interactions with TV editors along expected lines, the market continued its sideways movement in post-noon trade. The consolidation, which began on Tuesday, continued for another day, and the market closed in the green.
The Sensex closed 27 points up at 18,301, while the Nifty ended flat (up 0.70 points) at 5,482. The market needs to sustain above the 20-day moving average and cross 5,555 on the Nifty and 18,500 on the Sensex for the rally to sustain.
US markets closed on a firm note overnight on better-than-expected profit estimate by Dell Incorporated and on the minutes from the minutes of the latest meeting of the Federal Reserve’s Federal Open Market Committee that portrayed optimism about the US economic outlook. Officials also expected inflation to stay muted and unemployment to remain high. However, a new concern arose as Israel warned that two Iranian warships crossing the Suez Canal into the Mediterranean Sea were “provocations” that Israel couldn’t ignore.
The Dow surged 61.53 points (0.50%) to 12,288.17. The S&P 500 added 8.31 points (0.63%) to 1,336.32 and the Nasdaq gained 21.21 points (0.76%) to 2,825.56. The S&P 500 closed above 1,333.58, double the intra-day low hit in early March 2009. On a closing basis, the market has risen more than 96% since 9 March 2009.
Markets in Asia were mostly higher in early trade on Thursday, supported by a positive close in the US markets on Wednesday. Optimism by the US Federal Reserve helped the US bourses’ performance yesterday. In regional news, China said it will stop publishing its index of national property prices, scrapping a set of data whose accuracy was widely questioned but which also had become a rallying point for public anger over rapidly rising housing prices. Brent oil prices surged to near two-and-half year highs on Wednesday as fresh tensions between Israel and Iran ignited fresh tensions.
The Shanghai Composite rose 0.02%, the Hang Seng gained 0.15%, the Jakarta Composite was up 0.23%, the KLSE Composite surged 0.34%, the Nikkei 225 gained 0.38% and the Taiwan Weighted was up 0.15%. On the other hand, the Straits Times fell by 0.31% and the Seoul Composite lost 0.48%.
Back home, leading think-tank CMIE in its latest review said that the Indian economy is likely to grow by an impressive 9.2% in the financial year 2010-11.So far, real GDP has expanded by 8.9% in the first-half of FY11. In the quarter ended March 2010, real GDP grew by 8.6% and in the subsequent quarters, improved further to 8.9% in each quarter, CMIE added.