The key domestic benchmarks are tipped to open higher today tracking a firm trend in fellow Asian stocks and a strong closing at Wall Street overnight as a string of better than expected US corporate earnings infused optimism over the health of the world’s biggest economy. SGX Nifty is trading at 42.50 points higher.
The optimism over the country’s economic outlook may continue to boost sentiment. However, some volatility may be seen in the market as traders roll over the positions ahead of the F&O October contract expiry tomorrow, while caution ahead of Fed decision may also curb gains.
Indian shares rose on Tuesday to their highest close in more than a month, with drugmakers getting a boost after Ranbaxy Laboratories Ltd reported its first profit in six quarters. The BSE Se nsex and the CNX Nifty ended 0.48%-0.45% higher.
On Tuesday (October 28, 2014) 30-share Sensex ended up 128 points at 26,881 and the 50-share Nifty ended up 36 points at 8,028.
Asian shares advanced to one-month highs on Wednesday, helped by Wall Street which gained on optimism over corporate earnings and prospects the U.S. Federal Reserve will reaffirm its willingness to wait longer before raising interest rates.
US stocks rose more than 1% on Tuesday, with the S&P 500 ending above its 50-day moving average for the first time in almost a month as strong earnings eased concerns about the outlook for corporate America.
European shares rose on Tuesday, reversing the previous session’s dip as better-than-expected results from a number of blue-chips including pharma group Novartis and bank UBS helped lift sentiment.
Major Headlines of the day.
Dr Reddy’s launches organ transplant drug in the US.
Wipro to expand operations in Romania; hire 150 people.
FIIs, RFPIs can buy upto 49% of Hero Moto’s paid-up capital.
BHEL wins order for 444 Mw hydroelectric project in Uttarakhand.