Sensex, Nifty Likely To Open Higher After Worst Day Ever

Analysts say volatility cannot be ruled out for the time being as investors assess the policy decisions announced by authorities around the globe to fight the rapid spread of the coronavirus (COVID-19) pandemic.

Sensex, Nifty Likely To Open Higher After Worst Day Ever

Domestic stock markets are likely to start Tuesday's session on a positive note amid gains in Asian peers, a day after benchmark indices S&P BSE Sensex and NSE Nifty 50 suffered their worst single-day loss in history. The Singapore Exchange (SGX) Nifty futures - an early indicator of the National Stock Exchange (NSE) Nifty index - jumped as much as 420 points to touch 7,899.50 ahead of the opening of Indian markets before giving up some of those gains. At 8:02 am, the SGX Nifty futures were up 349.25 points (4.67 per cent) at 7,828.75.

Analysts say volatility cannot be ruled out for the time being as investors assess the policy decisions announced by authorities around the globe to fight the rapid spread of the coronavirus (COVID-19) pandemic. 

Asian stocks rallied on Tuesday as the U.S. Fed's pledge to stabilize the financial system eased debt market pressures. MSCI's broadest index of Asia-Pacific shares outside Japan added 1.2 per cent, though that followed a drop of almost 6 per cent on the previous day. South Korea and Australia also recouped some of their recent losses.

Wall Street's slide deepened on Monday as US Fed's action to shore up credit across the economy proved insufficient to sooth investors' fears. The Dow Jones tumbled 3.04 per cent to end at 18,591.93 points, while the S&P 500 lost 2.93 per cent to 2,237.4 and Nasdaq Composite dropped 0.27 per cent to 6,860.67.

US crude oil futures climbed nearly 3 per cent on Tuesday in light trading as the Trump administration launched an effort to work with Saudi Arabia to stabilise oil prices. West Texas Intermediate (WTI) crude futures for May delivery rose $0.67, or 2.9 per cent to $24.03 and Brent futures for May delivery rose 52 cents, or 1.9 per cent to $27.55.

Meanwhile. the world economy is facing "severe" economic damage from the coronavirus pandemic that could be even more costly than in 2009 and require an unprecedented response, IMF chief Kristalina Georgieva told finance ministers from the G20 nations on said Monday.

The total number of coronavirus cases in the country climbed to nearly 500 and the death toll rose to 9, according to the Union Health Ministry, as more than 30 states and union territories have been placed under a complete lockdown in an effort to control the spread of the deadly Covid 19 contagion.

Dalal Street had a nightmarish session on Monday, with trading being halted for 45 minutes earlier in the day after the benchmark indices hit the lower circuit of 10 per cent. The trading halt was a second in a span of seven sessions. The Sensex ended the session 3,935 points or 13.15 per cent lower at 25,981 and Nifty 50 index sank 1,135 points or 13 per cent to close at 7,610.