Market may extend gains on strong global cues

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 31.50 points at the opening bell, backed by strong global cues.

Overseas, shares in Asia advanced amid hopes global tariff tensions were abating as the United States and Mexico made a deal to overhaul the North American Free Trade Agreement.

US stocks gained Monday, with the S&P 500 and the Nasdaq closing at records for a second straight session, as the market rallied on enthusiasm over a new trade deal between the US and Mexico.

On Monday, the United States and Mexico announced that a deal had been agreed upon after months of negotiations between the two countries over the future of the North American Free Trade Agreement. The new deal, which President Donald Trump has said would be called The United States-Mexico Trade Agreement, is expected to last 16 years and will be reviewed every six years pending its approval by Congress, according to US Trade Representative Robert Lighthizer.

On the US data front, a measure of the US economy from the Chicago Federal Reserve slowed in July from June's robust performance, owed in large part to lighter output at the nation's factories. The Chicago Fed's index of national economic activity registered at a positive 0.13 last month, down from an upwardly revised positive 0.48 in June.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 252.52 crore yesterday, 27 August 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1,117.24 crore yesterday, 27 August 2018, as per provisional data.

Domestic stocks logged strong gains on upbeat global cues yesterday, 27 August 2018. The barometer index, the S&P BSE Sensex, gained 442.31 points or 1.16% to settle at 38,694.11. The Nifty 50 index gained 134.85 points or 1.17% to settle at 11,691.95. The Sensex and the Nifty, both, attained record high levels in intraday as well as on closing basis.

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