The financial companies worldwide cheered the move as it lowered concerns over their earnings. The MSCI Asia Pacific Index gained 0.5% at 137.87, with about four stocks advancing against each that fell. The Nikkei 225 surged by 0.89% at 10,099.76. The Japanese markets were trading strong as the Greece rescue plan have lowered the concerns over the Eurozone crisis, thereby boosting the outlook for the Japanese exporters.
The Shanghai Composite increased by 0.41% at 2,777.35. Further, the Hang Seng and Seoul Composite surged 1.31% and 0.71%, respectively. In the domestic arena, the markets are likely to follow the route of its global peers and open on a strong note. The Consumer Durables, Realty, Banking and IT space will be in focus during today"s trade.
Previous trading session
On Thursday, the domestic bourses continued to trade weak as the benchmark indices marked its second straight sessions of losses. Soon after witnessing a gap down opening, the benchmark indices were seen paring the losses and surge into the positive terrain. However, the market started to trade on a volatile note thereon. The 5,580 mark on Nifty acted as a solid resistance during the session and the market started dragging from there post mid-session.
The weekly inflation figures weighed heavily on the sentiment as it showed that fuel prices, which have the major weightage in the WPI, remained unchanged. Sensex stocks including Reliance Communications Reliance Industries, JP Associates and HDFC Bank were sold off heavily. Finally, the benchmark indices closed near their respective session lows.
The BSE Sensex closed at 18,436.19 down by 66.19 points or by 0.36% and NSE Nifty closed at 5,541.60, lower by 25.45 points or by 0.46%. The BSE Midcap was at 6,958.91 lower by 29.86 points or by 0.43%, whereas the BSE SmallCap closed at 8,394.30, decreasing by 38.04 points or by 0.45%. The BSE Sensex touched intraday high of 18,566.99 and intraday low of 18,415.36.
On Thursday, the U.S. markets closed on a robust note on the back of broadbased buying across sectors. Reports stating that a deal to restore Greece's debt-stricken economy has been drafted boosted the sentiment in the market during early trade. Further, a Philadelphia Fed Survey reading of 3.20 for July as compared to economists" expectation of a reading of 0.00 has further supported the upmove.
The higher than expected initial jobless claims for the week ended July 16 at 4,18,000 had failed to make any major impact on the market. The Financials space remained the major gainer during the session advancing by 2.5%. Further, the Energy sector also posted 2% gains during the session.
In the major indices, the Dow Jones Industrial Average (DJIA) closed with a gain of 152.50 or 1.21% at 12,724.41 while NASDAQ index finished up by 20.20 points or 0.72% to 2,834.43. The S&P 500 (SPX) closed higher by 17.96 points or 1.35% to 1,343.80.
Crude oil contracts for September closed higher by 0.3% at USD 99.42 per barrel, while August natural gas prices closed lower by 2.2% at 4.39 per MMBtu.
August Gold contract closed lower by 0.6% at USD 1587.50 per ounce, and September Silver closed down by 1.2% at USD 39.09 per ounce.
The FIIs on Thursday stood as net seller in both equity and debt. Gross equity purchased stood at Rs. 1880.70 crore and gross debt purchased stood at Rs. 439.40 crore, while the gross equity sold stood at Rs. 1911.80 crore and gross debt sold stood at Rs. 605.60 crore. Therefore, the net investment of equity and debt reported were Rs. (31.10) crore and Rs. (166.30) crore, respectively.
Top traded volumes on NSE Nifty – JP Associates 8657471, ITC 4932724, IDFC 4505159, Reliance Industries 3738005 and Axis Bank 2440745.
On BSE, total number of shares traded was 38.07 crore and total turnover stood at Rs. 2,717.91 crore. On NSE, total number of shares traded was 52.93 crore and total turnover stood at Rs. 10013.07 crore.
In the NSE Futures and Options segment, total number of contracts traded in index futures was 374404 with a total turnover of Rs. 9758.81 crore. Along with this total number of contracts traded in stock futures were 527115 with a total turnover of Rs. 15267.55 crore. Total numbers of contracts for index options were 2846720 with a total turnover of Rs. 79875.62 crore and total number of contracts for stock options was 120192 with a total turnover of Rs. 3620.50 crore.
Today, Nifty will face a resistance near 5,580 level and will have a support near the 5,490 mark.