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Market is seen rallying on strong global cues
(07 Jan 2019, 07:58)

Domestic market is seen rallying amid positive leads from Asian markets and Friday's surge on the Wall Street. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could surge 111 points at the opening bell.

Overseas, Asian shares advanced on Monday as a dovish turn by the Federal Reserve and startlingly strong US jobs data soothed some of the market's worst fears about the global outlook.

Investor sentiment also picked up slightly ahead of a round of trade negotiations between the United States and China in Beijing. The US and China will hold vice ministerial level trade talks in Beijing on January 7-8, according to the Chinese commerce ministry.

US stocks surged higher on Friday, buoyed by a better-than-expected jobs report for December and dovishly interpreted remarks by the chairman of the Federal Reserve.

The Bureau of Labor Statistics said the US economy added 312,000 jobs in December. The surge in hiring was the largest since February.

Investor optimism was further reinforced by comments by Federal Reserve Chairman Jerome Powell, who said during a Friday morning appearance that the jobs report didn't materially increase concerns over rising inflation, while reiterating that the central bank would continue to keep an open mind about how much it will raise interest rates in 2019 and how aggressively it will shrink its balance sheet, based on incoming data about the US and global economy, including recent weakness in equity markets.

In the global commodities markets, Brent for March 2019 settlement jumped $1.11 a barrel, or 1.98% to settle at $57.06 a barrel during the previous trading session.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 157.72 crore on 4 January 2019, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 240.60 crore on 4 January 2019, as per provisional data.

Domestic stocks snapped two-day fall to register modest gains on 4 January 2019. The barometer index, the S&P BSE Sensex, rose 181.39 points or 0.51% to settle at 35,695.10. The Nifty 50 index rose 55.10 points or 0.52% to settle at 10,727.35.

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