The markets are likely to build on the previous day's gains, thanks to positive cues from the global peers.

The US markets had rallied overnight, the Asian markets are stable this morning and SGX Nifty futures are also looking up in early trading activity. The European markets had edged higher on Monday due to relief that UK finally exited the European Union.

US stocks also rallied overnight, boosted by surprise strength in US manufacturing activity, following a sharp selloff last week on concerns about the economic impact of coronavirus.The Dow Jones rose 143 points or 0.5 per cent to 28,399, Nasdaq Composite added 122 points or 1.3 per cent to 9,273 and S-P 500 gained 23 points or 0.7 per cent to 3,248.There is a fragile calm on Asian Street this morning as investors waited anxiously to see if Beijing could stem the previous day's market rout.

MSCI's index of Asia-Pacific shares outside Japan inched up 0.1 per cent, led by gains in South Korea and Australia.

Japan's Nikkei pared opening losses to be off 0.2 per cent.Early trends on SGX Nifty also indicate a positive opening for the indices back home.

The Nifty futures were trading with gains of 45 points or 0.3 percent at 11,753 on the Singaporean Exchange.Meanwhile, oil hits 13-month lows as coronavirus as the outbreak of coronavirus curtailed Chinese demand and sparked concerns of potential supply cuts by OPEC.

Brent crude settled down $2.17, or 3.8 per cent at $54.45 a barrel, its lowest since January last year.The market participants would be awaiting the monetary policy review, which is due to be announced on Thursday.

The general view is that the central bank would maintain a status quo on the repo-rate front, on February 6, due to the continuing inflationary pressures.The markets had bounced back in the previous session after three days of continuous fall, with the Sensex closed higher by 137 points or 0.3 per cent at 39,872 and Nifty settling at 11,707, up 46 points or 0.3 per cent.On the results front, Bharti Airtel, Tata Global Beverages, Thermax, Titan Company, JSW Energy, and Punjab National Bank will be releasing their quarterly earnings during the day.