The BSE Sensex and NSE Nifty are likely to open strong on Wednesday tracking SGX Nifty and firm global markets.
At 8.31 am (IST), SGX Nifty was up 74.50 points, or 0.91 per cent, at 8,150.
Asian shares rose on Wednesday, taking early cues from overnight Wall Street gains, while investors’ sharper risk appetite lifted US debt yields and supported the dollar. Dow Jones Industrial Average index gained 0.50 per cent on Tuesday.
Hang Seng, Nikkei and Shanghai were up 2.99 per cent, 2.42 per cent and 1.80 per cent at 23,243.50, 19134.92 and 3376.49, respectively.
Activity in China’s services sector expanded at its fastest pace in three months in October, thanks to stronger new business, a private survey showed on Wednesday, easing concerns over persistent weakness in the economy as the manufacturing sector falters.
The Caixin/Markit Purchasing Managers’ Index(PMI) rose to 52.0 in October from September’s 14-month low of 50.5, hitting the highest level since July 2015.
Back home, the BSE Sensex and NSE Nifty swung between gains and losses on Tuesday as concerns about earnings continued to weigh, although higher Asian shares supported sentiment. Sensex closed 31.44 points up at 26,590.59 and snapped its 6-day losing streak. Similarly, Nifty closed 9.90 points up 8,060.70.
Tech Mahindra’s stocks will be in focus as country’s fifth largest IT services firm on Tuesday reported 9.1 per cent increase in consolidated net profit to Rs 785.63 crore for the quarter ended September 30.
Companies such as Voltamp, Bajaj Hind, Neyveli Lignite, KSB Pumps, Pricol, Omaxe, SCI, Bata India, Punjab Chemicals, Canara Bank, JK Lakshmi, Sparc, Century Ply and JB Chem Pharma may announce their earnings on Wednesday.