SGX Nifty jumps 158 points in early trade; five things to know before market opens
Domestic equity market benchmarks BSE Sensex and Nifty 50 are set to open higher on Tuesday, taking cues from their global peers. In the previous session, headline indices closed near to their all-time highs. A host of factors such as optimism around COVID-19 vaccine trial results, counting of votes for Bihar Assembly, quarterly earnings, oil prices, rupee trajectory and other global cues will keep the investors busy today. Analysts expect markets to extend their gaining momentum into the seventh session. Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, said that the Nifty 50 index is leaving many price gaps while heading higher which is a cause of concern, as any negative sentiment could pull down the market heavily.
Key things to know before market opens
SGX Nifty: Trends on SGX Nifty signals a positive start for BSE Sensex and Nifty 50 on Tuesday. Nifty futures were trading 157.50 points up at 12,655.50 on Singaporean Exchange.
Coronavirus vaccine development: Pfizer Inc and BioNTech SE said that their vaccine candidate was found to be more than 90 per cent effective in preventing COVID-19, based on initial data from a large study. This news lifted the sentiment across global stock market.
FII and DII data: On Monday, foreign institutional investors (FIIs) lapped up shares worth Rs 4,548.39 crore, whereas domestic institutional investors (DIIs) offloaded shares worth Rs 3,036.31 crore on a net basis in the Indian equity market, according to the provisional data available on the NSE.
Bihar election vote counting underway: The voting in Bihar was held in three phases for 243 seats. Early trends show NDA ahead on 15 seats, Mahagathbandhan also on 15 seats. Exit polls have indicated that it would tough for Nitish Kumar-led NDA to retain power against Tejashwi Yadav-led Mahagathbandhan.
Global markets: Asian stock markets soared on Tuesday as investors reacted to the developments on the coronavirus vaccine front. Japan’s Nikkei 225 rose 1.19 per cent while the Topix index gained 1.74 per cent. In overnight trade, the S&P 500 and the Dow rallied sharply but closed shy of their records on Monday. The Dow Jones Industrial Average rose 2.95 per cent, the S&P 500 rose 1.17 per cent while the Nasdaq Composite dropped 1.53 per cent.