Sensex, Nifty Likely To Open Firm

Asian stocks opened mostly higher on Wednesday, tracking modest Wall Street gains as prospects of an eventual victory against coronavirus shored up recovery hopes

Sensex, Nifty Likely To Open Firm

At 7:30 am, the Nifty futures were trading higher by 0.27 per cent on Singapore Stock Exchange

The domestic stock markets are likely to open in the green, continuing with the gains witnessed in the past 12 trading sessions, going by early indications from SGX Nifty futures trading. Trends on SGX Nifty indicate a positive opening for the index in India, with a 39-points gain. At 7:30 am, the Nifty futures were trading at 14,639, higher by 39 points or 0.27 per cent on the Singapore Stock Exchange.

Asian stocks opened mostly higher on Wednesday, tracking modest Wall Street gains as prospects of an eventual victory against coronavirus shored up recovery hopes, while tight supply expectations pushed oil prices to their highest in a year.

Markets were mixed with Japan's Nikkei 225 up 0.11 per cent, Australia's S&P/ASX 200 down 0.1 per cent and South Korea's KOSPI 0.64 per cent higher.

The benchmark S&P 500 closed barely higher on Tuesday while shares in smaller companies soared to record highs as investors favored more economically sensitive market segments as they bet on a recovery in 2021.

Overnight, the Dow Jones Industrial Average rose 60 points, or 0.19 per cent, to 31,068.69, the S&P 500 gained 1.58 points, or 0.04 per cent, to 3,801.19 and Nasdaq Composite added 36.00 points, or 0.28 per cent, to 13,072.43.

On the economy front, retail inflation fell sharply to 4.59 per cent in December mainly due to declining food prices, according to the data released by the Ministry of Statistics and Programme Implementation post market hours on Tuesday. The retail inflation based on the Consumer Price Index (CPI) was 6.93 per cent in November.

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Food inflation declined to 3.41 per cent in December in 2020, compared with 9.5 per cent in the previous month.

Meanwhile, the Index of Industrial Production (IIP) contracted 1.9 per cent in November 2020. The factory output in the country had grown at 3.6 per cent in October.

On the earnings front, Infosys, Wipro and CESC will be among the major companies to announce their numbers during the day.

On Tuesday, the BSE Sensex had climbed 247.79 points to 49,517.11 and Nifty had crossed the 14,500-mark to close at 14,563.50, up 78.70 points.