Stocks markets opened flat today with positive bias, taking cues from global markets with the US market closing strongly. At 10.30 am, the Sensex was trading at 26705.72, up 62.48 points, while the Nifty was trading 15.85 points up at 8208.10.
After a long holiday period, the US markets opened on strong note on Tuesday and moved up sharply. The US equities saw strong gains as strong manufacturing data fueled confidence in the US economy as the US dollar extended gains. While major indices came off from days high, they closed with a positive note for the day. A positive economic data by Institute for Supply Management showed that PMI for December increased to 54.7 from 53.2%, showing strength in the economy and this could have helped the sentiment.
Most of the European markets also ended on a positive note on the back of positive economic data from UK. Further positive data points both from US and China also played a role in yesterday’s trade.
“Global equities rally extended into the New Year as data from the US, China and Europe boosted optimism for global growth. Japanese equities lead gains close to 2 percent in the first trading session of 2017 in Asia, after strong economic data fuelled gains in the US dollar against weaker yen. Chinese shares were lower, despite the overall cheer in Asian markets,” said an SMC Global Securities report.
Indian markets traded in a narrow range on Tuesday. While banking stocks which had been weak in the previous trading session saw some buying interest, oil marketing companies recovered on the news of hikes in petrol and diesel prices.
As per provisional figures, foreign institutional investors (FIIs)/ foreign portfolio investors (FPIs) sold shares worth net Rs 500.49 crore on 3rd January 2017. Domestic institutional investors bought shares worth Rs 562.27 core on that day.