Nifty futures, Asian indices up again on Wall St gains

Hong Kong: The Indian market is poised for another good day of gains, going by early trades on the Nifty futures index.

As at 7.30 am IST, the index is sitting up nicely by about one-half of 1 percent, on improved FII sentiment and the expectation of policy action, both at home and abroad.

Indices elsewhere in the Asia-Pacific region too are up this morning. Tokyo’s Nikkei index is the outperformer, up in excess of 1.6 percent, but most other markets are up by between three-tenths of 1 percent and one-half of 1 percent.

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Overnight, Wall Street too posted gains for the third straight day, with the broadbased S&P’s 500 index closing above 1400. Analysts are also seeing some early evidence of economic recovery in the jobs openings numbers, which are at their highest levels since June 2008. But other market mavens like David Rosenberg are pointing to the downside risks.In market guru Marc Faber’s estimation, the S&P’s index could go up to 1500 before crashing.

Barclays analysts point out that the market is perhaps looking past policy uncertainty in the short term, and that for that reason it may not be wise to “fight the rally”. Nevertheless, they caution against chasing the rally either, since they are unconvinced about the underlying fundamentals.

Back home, FII inflows into India have revived in July, and so far this year, investors have pumped in over Rs 50,000 crore. P Chidambaram’s early pronouncements have been like balm to the bruised souls of investors, but now comes the hard part - of delivering on the promises.

For today, there’s enough momentum from yesterday’s rally - and from strong cues from overseas - to make for a positive start to trading.