The domestic stock markets are likely to open strong, continuing with the nearly 2 per cent gains in the previous session, as hopes of an early coronavirus vaccine pushed the global markets higher. The US markets ended higher by nearly 3 per cent, Asian markets have opened strong this morning and trends on SGX Nifty indicate a gap-up opening for the index in India, with a 174 points gain. At 7:30 am, the Nifty futures were trading at 12,672, higher by 174 points or 1.7 per cent on the Singapore Stock Exchange.
Asian share markets mostly shot higher on Tuesday driven by regional airline, tourism and travel stocks as global investors applauded progress in the development of a coronavirus vaccine which lifted confidence in a world economic recovery.
Japan's Nikkei 225 rose 1.1 per cent after reaching a 29-year high in early trade and Australia's S&P/ASX 200 rose 1.6 per cent.
Hong Kong's Hang Seng index futures were up 1 per cent in early trade and MSCI's broadest index of Asia-Pacific shares outside Japan was 0.12 per cent higher.
The S&P 500 and the Dow had rallied sharply but closed shy of their records on Monday as investors bet that a full economic reopening was finally in sight following the first positive data from a late-stage COVID-19 vaccine trial.
The Dow Jones Industrial Average rose 2.95 per cent in its biggest one-day percentage gain since June 5 and S&P 500 rose 1.17 per cent.
Meanwhile, oil prices fell in early trade on Tuesday as concerns over demand in the near term in coronavirus-hit economies in Europe and the United States returned to haunt the market after an overnight surge on progress towards a COVID-19 vaccine.
U.S. West Texas Intermediate (WTI) crude futures dropped 81 cents, or 2 per cent, to $39.48 a barrel at 0029 GMT. OPEC+ agreed to cut supply by 7.7 million barrels per day from August through December to help support prices and then ease the cut to 5.7 million bpd from January.
On the earnings front, GAIL India, Mahindra & Mahindra, Hindalco Industries, Tata Power, Aarti Industries and Bata India will declare their Q2 numbers during the day.
On Monday, the BSE Sensex had jumped 704.37 points or 1.68 per cent to 42,597.43 and Nifty had gained 197.50 points or 1.61 per cent at 12,461.