Market may open higher

Domestic shares may mirror strength in other Asian stock markets. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 52 points at the opening bell.

Overseas, Asian shares traded higher on Wednesday after US-China trade talks resumed. Investors also awaited the release later on Wednesday of minutes from the US Federal Reserve's January policy-setting meeting, where policymakers took a dovish turn, effectively signaling no further rate hikes.

US stock indices held steady above the break-even line after opening lower on Tuesday. US President Donald Trump reportedly said Tuesday that trade talks with China are going well, adding the current March deadline is not a "magical date." Both countries have until then to come up with a deal. Otherwise, additional US tariffs on Chinese products could take effect. Trump indicated last week, however, he would be willing to push back the deadline.

Representatives from the US and China are meeting in Washington this week to resume trade negotiations, with high level discussions set to happen later in the week, the White House said Monday. US is reportedly seeking to secure a pledge from China that it will not devalue its yuan currency as part of a trade deal.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 813.76 crore on 19 February 2019, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1,163.85 crore on 19 February 2019, as per provisional data.

Domestic stocks erased intraday gains to settle with modest losses yesterday, 19 February 2019, in a volatile session. Broader market outperformed the main stock indices. The Nifty reversed gains after touching 10,700 mark in mid-afternoon trade. The barometer index, the S&P BSE Sensex, fell 145.83 points or 0.41% to settle at 35,352.61. The Nifty 50 index fell 36.60 points or 0.34% to settle at 10,604.35.

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