Following the biggest slide in 16 months, the 30-share Sensex is set
for a recovery today as markets in Asia rebounded after Tuesday’s bloodbath. The
key domestic benchmarks are likely to open higher today as Asian markets were
trading on a positive note despite a bearish finish at Wall Street overnight.
China’s Shanghai Composite and Hang Seng rallied on hopes of further policy
measures to help spur a rebound in the world’s second biggest economy. Japan’s
Nikkei 225 was trading higher even as a stronger yen dimmed the appeal of
exporter stocks. The mammoth plunge in domestic stocks yesterday may offer
investors a good bargain buying opportunity in equities, at existing levels,
supporting the Sensex. However, the Sensex faces some near-term volatility as
the continued plunge in oil prices and nervousness ahead of the Greek vote which
may determine Greece’s future in the euro makes global investors jittery. The
next major cue for the domestic market is the start of the Q3 earnings season
with Infosys to set the ball rolling on Friday.
