The benchmark indices are poised to start the day on a positive note, going by the indications from Nifty futures and early cues from the Asian Street. The Singapore Exchange (SGX) Nifty futures – an early indicator of the National Stock Exchange (NSE) Nifty index – rose as much as 221.35 points to touch 8,511.50 ahead of the opening of Indian markets. At 8:04 am, the SGX Nifty futures were up 179.35 points – or 2.16 per cent – at 8,469.50.
Going by recent trends, the markets have not been able to sustain intermittent gains despite the measures taken by RBI and other central banks as the rising number of Covid-19 cases and the economic fallout of lockdowns continue to cast of spell of gloom across the world.
A total of 7.9 lakh people across 190 countries are infected with Covid-19 and 37,000 have already succumbed to the dreaded disease. The government data on https://www.mohfw.gov.in shows 1117 positive cases and 32 deaths from coronavirus in India, as of Tuesday morning. The health ministry has reiterated that there has been no community transmission of Covid-19 virus infections in the country as yet.
Analysts expect volatility to persist in the markets in the near term as investors assess the impact of the coronavirus-induced lockdown on the economy.
Asian shares also rallied on Tuesday as factory data from China held out the hope of a rebound in activity in the second largest economy of the world. The MSCI’s broadest index of Asia-Pacific shares outside Japan rise 1.1 per cent. Japan’s Nikkei firmed 1 per cent after a jittery start, while South Korea added 2 per cent.
Overnight, the US stocks rose as President Donald Trump followed last week’s massive fiscal stimulus package by extending his stay-at-home guidelines. The Dow Jones was up 482.20 points, or 2.23 per cent at 22,118.98, the S&P 500 was up 66.06 points or 2.60 per cent at 2,607.53 and Nasdaq Composite was up 220.56 points or 2.94 per cent at 7,722.94.
Meanwhile, oil prices plunged to the lowest in almost 18 years on Monday as lockdowns for the virus squeezed demand even as Saudi Arabia and Russia vied to pump more product. Brent crude, the world’s benchmark, tumbled as much as 13 per cent to as low as $21.65 a barrel, before settling at $22.76 a barrel, the lowest close since November 2002.
Reports suggest that the government may slash or even cancel its planned borrowings from the market for April amid a nationwide lockdown prompted by the coronavirus outbreak, two finance ministry sources told Reuters.
The Sensex had closed Mondays’s session with a loss of 1,375 points or 4.61 per cent at 28,440.32 and Nifty had settled 379 points or 4.38 per cent lower at 8,281.10.