Market poised for rally in early trade

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 220 points at the opening bell.

Global markets:

Overseas, Asian stocks are trading mixed Friday after a rally on Wall Street. That followed a negative US gross domestic product report, which suggests the Fed would be less aggressive in its tightening cycle.

Japan's industrial output jumped 8.9% in June from the previous month, the ministry of economy, trade and industry said Friday. The print surprised to the upside after falling in May.

US stocks on Thursday rallied for a second day, with all three major indices ending up more than 1% as data showing a second consecutive quarterly contraction in the economy fueled investor speculation the Federal Reserve may not need to be as aggressive with interest rate hikes as some had feared.

The US economy shrank from April through June for a second straight quarter. U.S. economic growth fell 0.9% in the second quarter, the Bureau of Economic Analysis reported Thursday. First-quarter GDP declined by 1.6%.

President Joe Biden insisted Thursday that the US economy was "on the right path," with solid job growth, despite a second straight quarter of contraction that has deepened fears of a recession.

Domestic markets:

Back home, the benchmark indices ended with stellar gains on Thursday, tracking positive global cues. The barometer index, the S&P BSE Sensex, jumped 1,041.47 points or 1.87% to 56,857.79. The Nifty 50 index surged 287.80 points or 1.73% to 16,929.60.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,637.69 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 600.29 crore in the Indian equity market on 28 July, provisional data showed.

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