Despite muted cues from global rivals, domestic equity markets are poised to start Thursday’s trading session on a high note after a one-day hiatus. Overnight trading saw a decline in US stocks, while Asian peers were mixed. The US dollar somewhat weakened, but crude flexed its muscles due to a reduction in output. The holiday season and India Inc’s earnings will influence D-street at home.
The Singapore Exchange’s Nifty futures traded 93 points, or 0.54 percent, higher at 17,432, indicating that Dalal Street will have a good day on Thursday.
On the daily charts, the Headline index Nifty established a long bullish candle on Tuesday as it finished with a gain of 387 points. For the past two sessions, the index has been generating higher bottoms, which suggests that the rise will soon continue. The fear index dropped significantly over 8% to a level of 19.57 on Tuesday from its finish of 21.36 on Monday. On Thursday, major Asian equities bucked the trend and opened higher before turning mixed, as Wall Street struggled on profit-taking as recent global rallies sputtered. The MSCI Asia-Pacific ex-Japan share index was trading 0.19 percent higher.
Besides, On Wednesday, the S&P 500 snapped a three-day winning streak and finished in the red as fears of a global economic downturn increased in response to bleak earnings expectations. Moreover, Following a session-high increase of more than 3%, oil prices continued to surge in early Asian trade on Thursday, supported by record U.S. crude exports and a declining U.S. dollar. By 00:15 GMT, Brent crude futures were up 25 cents, or 0.3%, to $95.94 per barrel. WTI crude for the United States gained 19 cents, or 0.2%, to $88.10.
The euro climbed above parity and its major rivals to multi-week highs on Thursday as market anticipation grew that the Federal Reserve will scale back its hawkish attitude on interest rate hikes. This caused the dollar to decline. The decline of dollar has also affected the Indian rupees to great extent