Nifty futures edge up as markets look for year-end cheer

Nifty futures edge up as markets look for year-end cheer

#BSE #Equity market #Eurozone #nifty #Sensex #Wall Street #Whileyouweresleeping

Hong Kong: The Indian market appears determined to finish what has been a horrendous year on a relatively upbeat note. Yesterday's rally has feeble legs, and going by how Nifty futures are trading this morning, the rally could spill over into today.

As at 7.30 am IST, Nifty futures are trading marginally higher, pointing to a very mildly positive start to trade today.

But otherwise, there are no global cues to pick up from, since most Asian markets are on holiday, as was Wall Street overnight.

The market looks determined to end what has been a horrendous year on a highYet, looking beyond today, analysts reckon that the new year will bring yet more pain since the global economy still faces economic headwinds, and the prospect of a recession haunts most developed economies.

India's growth engine too is faltering, even if it is a relative outperformer. Even if inflation is finally vanquished and interest rates start to come down, it could be a while before it gains traction and fires up the economy. Any consideration of economic reforms – if the government does have courage to see them through – must wait till the current round of State elections are over.

Even if the economy revives in the second half, the overhang from everything that's happening in Europe and in the US will likely cast a dark cloud over investor sentiment. There's a very real risk of sovereign rating downgrades in many of the AAA rated economies.

Overall, perhaps a mildly positive start to trade today, but the underlying sentiment is far from robust.