The benchmark indices are poised to open higher after the extended weekend due to favourable cues from the global market front. Wall Street had a strong session overnight, Asian markets were looking good in early trading and trends on SGX Nifty also indicated a firm opening for the markets back home. The financial markets were shut on Monday, April 6, on account of Mahavir Jayanti.
Trends on SGX Nifty indicate a positive opening for the index in India with a 179 points gain. The Nifty futures were trading at 8,508, higher by 179 points, on the Singaporean Exchange around 07:30 hours.
Asian markets rallied on signs of a slowdown in coronavirus-related deaths. Nikkei futures had gained 2.3% p-er cent, while Hong Kong futures were up and Australia futures also rose in early trade.
US stocks rocketed higher by 7 per cent on Monday after a fall in the daily death toll in New York, the country's biggest coronavirus hot spot, fueled optimism a leveling off of the pandemic was on the horizon. The Dow Jones rose 1,627.46 points, or 7.73 per cent, to 22,679.99, the S&P 500 gained 175.03 points, or 7.03 per cent to 2,663.68 and Nasdaq Composite added 540.16 points, or 7.33 per cent, to 7,913.24.
Oil rose on Tuesday amid hopes that the world's biggest producers of crude will agree to curtail production as the coronavirus pandemic ravages the global economy. Brent crude was up by 73 cents, or 2.2 per cent, at $33.78 a barrel and US crude was up by 97 cents, or 3.7 per cent, at $27.05 a barrel.
Meanwhile, India's services activity contracts to a 5-month low in March amid the coronavirus scare and resultant 21-day lockdown across the country. The Nikkei/IHS Markit Services Purchasing Managers' Index fell sharply to a five-month low of 49.3 in March from February's seven-year high of 57.5, below the 50-mark separating growth from contraction for the first time since October.
The equity markets had fallen 2 per cent last Friday. The S&P BSE Sensex index ended 674.36 points lower at 27,590.95 and the broader NSE Nifty 50 benchmark settled at 8,083.80, down 170.00 points. Benchmark indices have nosedived for the seventh consecutive week ended April 3 amid worries over increasing COVID-19 infected cases globally