Hong Kong: The Indian market will be looking to play catch-up after having missed out on yesterday’s surge in global markets owing to the Shivratri holiday. But the signal from markets in the Asia-Pacific region this morning isn’t very encouraging.
Early gains on most regional indices are being pared, as investors wait for word on the outcome of ongoing talks in Europe on a bailout deal for Greece that is intended to avert a default. But the talks have been going on all night – they’re having their own version of a sleepless Shivratri – without a formal agreement.
The absence of any cues from Wall Street overnight, which was closed for a local holiday, is also a drag on investor sentiment.
The Indian market will be looking to play catch-up after having missed out on yesterday’s surge in global markets. Reuters
As at 7.30 am IST, the trading boards across the region present a mixed picture: Tokyo, Hong Kong and Shanghai are all witnessing volatile trades. Only Sydney is emphatically up.
Nifty futures too are drifting down, and trading around the 5,620 mark, but that still provides some upside potential when markets open in Mumbai today – unless sentiment turns overwhelmingly downbeat on negative news flows.
Back home, although chartists expect the run of recent weeks to continue, fundamental analysts are increasingly getting unnerved. They reason that it’s bound to be reversed – or at least pegged back on some profit-taking. Thus far, they’ve been proved wrong, largely because FII flows have been robust. But that sentiment, as we’ve seen, can turn on a dime.
Overall, though, the Indian market today will likely open a bit to the upside, largely to catch up on the action that it missed yesterday, but unless sentiment out of Europe signals a positive outcome, it may be hard to sustain it, given the weak undertone across Asian markets this morning.