Domestic markets are expected to open on a flat note on Wednesday with positive bias, amidst global cues. Overnight the US stocks, after opening on weak note, recovered.

SGX Nifty at 17,890 (750 am) indicates a positive opening, as Nifty futures on Tuesday closed at 17,850.65.

Though Dow Jones Industrial Average and S&P 500 closed in the green, tech-heavy Nasdaq index ended marginally lower.Following track, most equities across Asia-Pacific are ruling in the green in early trade on Wednesday except Korea, Australia and New Zealand stocks that are down marginally.

According to analysts sustained foreign portfolio investors' buying and easing of inflation worries boosted sentiment for domestic markets. Brend Crude Oil is hovering around $92.3 a barrel and at WTI $86.75 giving a big relief to oil importing countries such as India.

‘Still bearish’

According to BofA's latest monthly Fund Manager Survey, Sentiment still remains bearish, but no longer apocalyptically bearish as hopes rise that inflation and rates shocks end in coming quarters.

Second consecutive month of softening in inflation data, along with robust IIP growth, boosted the market sentiments, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

It has led to the hope that inflation might have peaked out with the sharp cool off in the commodity prices. Hence expectation of a softer stance by RBI in its next MPC meeting, he said and added: "FIIs continuous buying throughout the month of August so far has provided further fillip to the markets. Markets have done well in the last couple of weeks with Nifty crossing major resistance. We expect Nifty to consolidate at higher levels and inch upwards towards the 18,000 mark."

Nifty to hit 19000?

Mitul Shah - Head of Research at Reliance Securities, said with the earnings season nearing its end, most companies witnessed a strong revenue growth with continued pressure on the margins due to commodity inflation.

"Nifty gained 16 per cent since its June low but we expect markets to remain volatile in the near-term," he said and added "However, strong economic rebound, normalised commodity prices, inflation within targeted range and better visibility is expected by 2HFY23, which would transform Nifty valuation to close to its historical average."

He expects Nifty to hit 19000-mark by year end on sustained FPI buying.