SGX Nifty hints at positive start

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 47 points at the opening bell.

The Reserve Bank of India`s rate-setting panel on Wednesday began its three-day deliberations on the next bi-monthly monetary policy. The Monetary Policy Committee is scheduled to announce its decision on August 5. While a 25 bps hike is ruled out, market opinions are reportedly split between a 35 bps hike and a 50 bps hike.

Global markets:

Overseas, Asian stocks are trading higher on Thursday following the rally on Wall Street. Investors move on from the tensions over U.S. House Speaker Nancy Pelosi`s controversial visit to Taiwan. Pelosi met with Taiwan President Tsai Ing-wen on Wednesday amid warnings from Beijing. Pelosi has since left the self-ruled island that China views as a runaway province to continue with her Asia tour.

Wall Street ended sharply higher on Wednesday, with strong profit forecasts from PayPal and CVS Health Corp lifting sentiment. A better-than-expected services PMI reading for July gave investors confidence amid concerns about a U.S. recession.

The US services industry unexpectedly picked up in July as new orders grew solidly. The ISM`s non-manufacturing PMI rebounded to a reading of 56.7 last month from 55.3 in June, ending three straight monthly declines.

Domestic markets:

Back home, the benchmark indices reversed intraday losses and ended with modest gains on Wednesday. The barometer index, the S&P BSE Sensex, rose 214.17 points or 0.37% to 58,350.53. The Nifty 50 index added 42.70 points or 0.25% to 17,388.15.

Foreign portfolio investors (FPIs) bought shares worth Rs 765.17 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 518.42 crore in the Indian equity market on 3 August, provisional data showed.

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