Global positivity to cheer Nifty; green opening likely

The Indian equity market is expected to open in the green today with the SGX Nifty trading at 7826.50, up 90.50 points.

After six days of struggle, the bulls finally got some respite on Dalal Street with a global relief rally aiding the market. The Sensex was up 424.06 points or 1.7 percent at 25317.87 and the Nifty gained 129.45 points or 1.7 percent at 7688.25.

Globally, Wall Street traded after a three-day long weekend and with a bang. Major US indices rallied over 2 percent for their second-best day of the year.

US economy is growing, but not at a booming rate, says oracle of Omaha, Warren Buffet. He is confident stocks will be higher in next 5-10 years and has plans to invest USD 32 billion in the next four to five months.

Asian shares surged in early trade, inspired by the positive finish in offshore markets and as investors bet on China to step on the stimulus pedal soon.

And in Europe, equities closed more than 1 percent higher , buoyed by positive data.

The French CAC ended around 1.2 percent higher, the German Dax closed 1.6 percent up, with the index outperforming after both exports and imports in Germany hit a record high in July.

In other asset classes, the renewed risk appetite helped the dollar gain against the safe-haven yen, but the greenback still inched lower against the euro. The dollar index was trading below USD 96 mark.

Brent crude rose almost 4 percent to USD 49 per barrel overnight as rally in equity markets helped the global oil benchmark recover substantially.  

Precious metal gold traded steady around USD 1120 an ounce, but it remained close to three-week lows as uncertainty over a looming US interest rate hike persisted.