Sensex, Nifty Likely To Have A Subdued Opening

The domestic stock markets are likely to open flat as surging COVID-19 cases and growing threat of a fresh round of economic lockdowns dampened the euphoria caused by potential vaccine breakthroughs in global markets. Trends on SGX Nifty indicate a flat opening for the index in India, with a 11-points gain. At 7:30 am, the Nifty futures were trading at 12,909, higher by eleven points, on Singapore Stock Exchange.

Asian equities were set for a sluggish open on Wednesday, tracking a lower Wall Street session. Japan's Nikkei 225 futures fell 0.35 per cent, while Australia's S&P/ASX 200 were up 0.4 per cent in early trading.

U.S. stocks retreated from record closing highs on Tuesday; the Dow Jones Industrial Average fell 0.56 per cent, the S&P 500 lost 0.48 per cent and Nasdaq Composite dropped 0.21 per cent.

Meanwhile, oil prices edged lower in post-settlement trade on Tuesday after an industry group reported a bigger build than expected in U.S. crude stockpiles, adding to worries that new coronavirus lockdowns could hit demand.

During the session, prices were narrowly mixed as the demand fears offset hopes for a vaccine and talk of tighter OPEC+ supply policies. Brent futures fell 7 cents, or 0.2 per cent, to settle at $43.75 a barrel. U.S. crude gained 9 cents, or 0.2 per cent, to settle at $41.43.

The benchmark indices had ended at record closing highs on Wednesday; the Sensex rose 315 points or 0.72 per cent to close at 43,953 and the Nifty 50 went up 94 points or 0.74 per cent to close at 12,874