Domestic stock markets are likely to start Wednesday's session on a positive note shrugging off weakness in Asian peers, where equities gave up early gains amid concerns about the economic impact of the coronavirus outbreak. The Singapore Exchange (SGX) Nifty futures - an early indicator of the National Stock Exchange (NSE) Nifty index in India - climbed up as much as 45.5 points ot touch 12,113.50 ahead of the opening of Indian markets. At 8:30 am, the SGX Nifty futures were up 29.00 points - or 0.24 per cent - at 12,097.00.
Analysts say the markets are likely to remain volatile until the government presents the Union Budget on February 1, when it may also unveil more measures to lift growth.
Corporate earnings will also be monitored closely for cues. Bajaj Finance, Bajaj Auto, Bharti Infratel, Tata Motors, ITC, SBI and Vedanta will report their financial results for the quarter ended December 31 this week.
Shares in other Asian markets swung into negative territory as a spike in new Chinese virus cases sent Hong Kong stocks tumbling and fuelled fears about the economic impact of the outbreak.
MSCI's broadest index of Asia-Pacific shares outside Japan skidded 0.52 per cent. Hong Kong shares fell 2.8 per cent on their first session after a two-and-a-half trading day break for Lunar New Year, led by declines in financial services, real estate, and consumer goods companies.
On Tuesday, the S&P BSE Sensex index had declined 188.26 points - or 0.46 per cent - to end at 40,966.86 and the broader NSE Nifty benchmark settled at 12,055.80, down 63.20 points - or 0.52 per cent - from its previous close, as the markets extended losses to a second straight day.