The
key domestic benchmarks are tipped to witness a strong opening tracking a
bullish trend in Asian markets as an aggressive stimulus plan from the European
Central Bank (ECB) may boost foreign fund inflows into emerging markets such as
Asia’s third biggest economy. The ECB which kept its key benchmark rate at a
record low of 0.05 per cent unveiled a bigger than expected asset-purchase
program including private and public securities, as it seeks to avert the threat
of deflation in the 19-member Euro area economy. The ECB announced monthly asset
purchases of up to 60 billion euro through September 2016. China’s Shanghai
Composite rose after the country’s Premier assured that the world’s second
biggest economy may avoid a hard landing and see an “appropriate” pace of growth
while a manufacturing gauge beat estimates. The China HSBC Manufacturing PMI
came in at 49.8 in January, compared with analysts’ estimates of 49.5. Hang Seng
and Japan’s Nikkei 225 surged. Owing to strong global optimism, the Sensex could
hit a fresh high today. Colgate Palmolive, Alstom India and Ultra Tech Cement
will report their December quarter earnings today.
