Markets are likely to open marginally higher taking cues from the Asian peers as investors flock into beaten down stocks. The Nifty futures on the Singapore Exchange advanced 26 points, at 4,969.
In Asia, the indices were trading mixed on Tuesday morning session. Expectations that China will buy Italy's bonds and provide some relief to the economic situation calmed jitters. Nikkei was up 0.3% to 8,562. Straits Times advanced 0.7%. However, Taiwan Weighted and Shanghai Composite opened in the negative zone as investors played catch-up after remaining shut for the three day weekend.
South Korea’s Kospi was shut for the Chusok holiday, while Hong Kong’s markets were shut for the Mid-Autumn Festival.
US markets also ended in the green with the Dow Jones Industrial Average jumping 69 points to 11,061. Nasdaq also added 1% to 2,495 and S&P 500 advanced 0.7%.
On Monday, the Indian markets took a pounding as the industrial output data was reported below expectation, at 3.3% in July below 6.2% median forecast. While the markets may claw back in opening trades, gains may be limited as Inflation for the month of August may remain close to double digits, prompting the Reserve Bank of India to hike rates further during the monetary policy review on Friday.
Foreign Institutional Investors were net sellers of Rs 934 crore in cash on Monday, while the domestic institutional investors bought shares worth Rs 428 crore.