Domestic stock markets are likely to start Wednesday’s session on a positive note, tracking gains in Asian peers amid hopes the worst of the coronavirus outbreak in China may have passed. The Singapore Exchange (SGX) Nifty futures – an early indicator of the National Stock Exchange (NSE) Nifty index in India – rose as much as 36.5 points to touch 12,163.50 ahead of the opening of Indian markets. At 8:26 am, the SGX Nifty futures traded 30.50 points – or 0.25 per cent – higher at 12,157.50.
Analysts awaited the release of official data on consumer inflation and industrial production later in the day for more clarity on the state of the economy.
The government will at 5:30 pm release consumer inflation data for the month of January and factory activity data for the previous month.
More than 40 economists expect retail inflation – or the rate of increase in consumer prices – to worsen to 7.40 per cent in January, a touch above December’s 7.35 per cent and the highest since May 2014, according to a poll conducted by news agency Reuters from February 5 to February 7.
Equities in other Asian markets as well as US futures rose, although prevailing uncertainty about the coronavirus outbreak kept investors wary.
MSCI’s broadest index of Asia-Pacific shares outside Japan was last seen up 0.31 per cent. Chinese shares were down 0.12 per cent and Hong Kong rose 0.57 per cent to a three-week high. Japan’s Nikkei 225 benchmark index rose 0.6 per cent.
The global mood brightened after China’s senior medical adviser said on Tuesday the number of new coronavirus cases was falling in some provinces and forecast the epidemic would peak this month.
Domestic stock markets had snapped a two-day losing streak on Tuesday, with benchmark indices S&P BSE Sensex and NSE Nifty ending 236.52 points (0.58 per cent) higher at 41,216.14 and 76.40 points (0.63 per cent) higher at 12,107.90 respectively.