The New Year experience of global equities sets the tone for another positive start for the Indian stocks. However, the sudden turnaround intra-day in the key indices on Monday is a cause for worry. In the near term, the sentiment will be largely driven by global cues before Q3 results start kicking in.
Growing optimism about the state of the global economy and an upbeat report on manufacturing PM led US stocks to extend the so-called “Santa Clause” rally of December. European shares too closed smartly up. London markets remained shut.
In Asian stocks in South Korea surged to an all-time high. This morning, Japanese and Chinese markets have resumed trading on a strong note. The Hang Seng is a little subdued though after Monday’s rally.
The RBI policy review later this month is another important event for the markets. As far as this week is concerned, global markets will keenly follow the monthly US jobs data.
