After Finance Minister Nirmala Sitharaman lived up to her promise of delivering a budget like never before, the markets celebrated yesterday with a 5% gain. It is likely that the markets will open higher today as well. Here are the three reasons for the same:
- Revived Market Sentiment: It seemed like bears had taken control of the market from January 22. Five trading sessions had seen the markets fall over 5% as data began to emerge that the impact of the pandemic would be felt in the fourth quarter of FY21. However, the Budget has made bold moves and has loosened strings for spending. This has led to a revival of animal spirits across sectors and the bulls will come out in full force in early trade. Nifty Futures in Singapore are trading up 0.7%, and that generally indicates a positive opening for Indian markets.
- US Markets Up: US markets had a good opening to February with S&P 500 gaining 1.61%, its biggest daily percentage gain since November 24. The Dow Jones Industrial Average gained 0.76% and Nasdaq Composite gaining 2.55% to close out a strong first day. Dow Jones 30 Futures are up 0.42% while S&P 500 Futures and Nasdaq 100 Futures are up 0.5% and 0.76% as of this report.
- Strong Opening for Asian Markets: Asian markets have opened strong today. Nikkei 225is up 1.02% while KOSPIis up 2.37%. A strong Asian opening indicates that there have been no negative surprises so far and that is good for bulls in early trade.