Markets are expected to open on a subdued note due to lack of direction from the global markets. Brent crude topped $123/bbl, highest in 30 months led by escalating tensions in west Asia also weighed. The Nifty futures on the Singapore Exchange were down 2 points, at 5900.
After rallying around 10%, markets have been moving sideways for the past three sessions. Brokerages expect markets to trade in a range as fundamental factors remain unchanged. Edelweiss in its alternative monthly insights noted, “A major part of the rally could be attributed to the flows from the exchange traded funds. Still concerns like inflation, rising crude prices, deficit related issues, tumultuous political environment are far from over."
Analysts indicated that the upcoming earnings season will be a key event to watch out in the coming days. Additionally inflationary concerns may push Reserve Bank of India to tighten further. Edelweiss expects “the benchmark Nifty to trade within 5700-6100 in April, with crucial resistance and support for stationed at 5950-6100 and 5800-5700, respectively.”
Markets across Asia were trading marginally higher led by recovery in Yen; however oil producers were weak due to rising crude.
In the United States, the Dow Jones Industrial Average retreated from almost three-year high after the another 7.1 magnitude earthquake struck Japan and the European Central Bank (ECB) raised interest rates to 1.25% first time since the financial crisis struck. The ECB was the first monetary authority from the developed world to raise rates after 2008.
The Nikkei Stock Average was up 0.9% following recovery in manufacturing shares as Yen turned lower. Hang Seng index was trading flat, property developers were broadly lower on back of rising mortgage rates. The Shanghai Composite was trading up 0.2%.
