Markets are set for seventh consecutive advance in the opening trades following firm global cues. The Nifty futures on the Singapore Exchange surged 21 points, at 5777.
According to EPFR Global, markets have rebounded as the situation in Japan’s nuclear plant is coming under control and the crisis in West Asia is not deteriorating which has helped the global equity markets surge in the third week of March.
In India markets have rallied on account of buying by Foreign Institutional Investors (FIIs) and Mutual Funds. FIIs were net buyers of Rs 4352 crore in the Indian equities in the month of March so far. Mutual Funds have been net buyers Rs 4147 crore in the equity segment since January. Alex Mathews, Research Head from Geojit BNP Paribas Financial Services said, "Mutual Funds have been buying because of year end. Many investors want tax reduction so they have started investing in tax saving schemes."
Market sources expect positive momentum to continue if Nifty holds above 6590. Alex added, "even though the macro-economic fundamentals are still weak, market scenario has changed. We are trading above 200-Day Moving Average (5688), for the Nifty, 5690 remains a crucial level to watch out for."
Across Asia, markets were trading mostly higher on Wednesday morning following firm overnight cues from Wall Street. US Markets ended higher buoyed by rally in telecom and energy stocks. Japan's Nikkei Stock Average advanced 116 points, lifted by weakening Yen. Hong Kong's Hang Seng climbed 272 points, spurred by strong earnings. South Korea's Kospi Composite was up 14 points, but Shanghai Composite bucked trend, fell 11 points.