Sensex, Nifty Likely To Have A Firm Opening

Edited by Peter Noronha (with inputs from agencies)

04 Aug 2020, 08:10 AM IST

At 7:30 am, the SGX Nifty futures were trading higher by 0.4 per cent on Singapore Stock Exchange.

The domestic stock markets are likely to open on a positive note, post the nearly 2 per cent sell-off witnessed in Monday's session, after strong US manufacturing data lifted the US markets higher. Trends on SGX Nifty indicate a positive opening for the index in India, with a 49 points gain. At 7:30 am, the SGX Nifty futures were trading at 10,961, higher by 49 points or 0.4 per cent, on the Singapore Stock Exchange.

Asian shares were on track to open higher on Tuesday, after strong manufacturing data and gains in tech stocks boosted global equities and the U.S. dollar overnight. Hong Kong futures were up 0.65 per cent and Nikkei futures were above the Nikkei 225 index's previous close, pointing to an opening gain of about 0.88 per cent. Australian shares were also poised to open higher.

Nasdaq surged to a record high close on Monday as a rebound in multibillion-dollar deals, including Microsoft's pursuit of TikTok's U.S. operations, lifted sentiment, and efforts to hammer out a coronavirus relief bill resumed.

The Dow Jones rose 0.89 per cent, while the S&P 500 gained 0.72 per cent and Nasdaq Composite climbed 1.47 per cent, beating its previous record high close on July 20.

Meanwhile, oil prices were up more than 1 per cent on Monday on positive economic data from the United States, Europe and Asia. But investors remained concerned about rising COVID-19 cases globally and oversupply as OPEC begins to lift supply cuts.

Brent crude settled at $44.15 a barrel, rising 63 cents, or 1.5 per cent. U.S. West Texas Intermediate (WTI) crude rose 74 cents, or 1.8 per cent, to end at $41.01 a barrel.

On the earnings front, Marksans Pharma, MRPL, Godrej Consumer Products and Gujarat Gas are set to declare their earnings later in the day.

The equity marketsb in India had tumbled nearly 2 per cent on Monday amid rising COVID-19 cases in the country and overseas. The Sensex had ended 667.29 points - or 1.77 per cent - lower at 36,939.60, and the Nifty had settled at 10,896.75, down 176.70 points - or 1.60 per cent - from its previous close, extending losses to a fourth straight session.