The domestic markets are headed for a negative start on Tuesday, breaking a 4-day winning run, going by early trading on SGX Nifty. Trends on SGX Nifty indicate a positive opening for the index in India. At 8 am, the Nifty futures were trading at 10,727.50, lower by 38.5 points or 0.36 per cent, on the Singapore Stock Exchange.
Asian markets, however, looked set to rise on Tuesday as investors weighed growing expectations of an economic rebound in China and a resurgent U.S. services industry, brushing off worries about a spike in U.S. coronavirus cases.
Australian S&P/ASX 200 futures climbed 0.52 per cent, while Japan’s Nikkei 225 futures rose 0.07 per cent, and Hong Kong’s Hang Seng index futures were up 0.68 per cent. E-mini futures for the S&P 500 rose 0.08 per cent following a rally in global stocks on Monday.
Wall Street’s major indexes were up more than 1 per cent on Monday as data showing unexpected growth in the U.S. services sector last month and a revival in China’s economy boosted optimism, helping investors look past a surge in new coronavirus cases at home.
The Dow Jones rose 1.42 per cent, the S&P 500 gained 1.34 per cent and the Nasdaq Composite added 1.93 per cent.
Meanwhile, oil prices cautiously rose in early trade on Tuesday with major producers sticking to supply cuts, but gains were capped as U.S. coronavirus cases surged, potentially hampering a recovery in fuel demand.
U.S. West Texas Intermediate (WTI) crude futures climbed 13 cents, or 0.3 per cent, to $40.76 a barrel at 0103 GMT, recouping a 2 cent loss from Monday.
Brent crude futures rose 7 cents, or 0.2 per cent, to $43.17, adding to a 0.7 per cent gain on Monday.
The S&P BSE Sensex and NSE Nifty 50 indexes had surged for a fourth day in a row to end at highest levels since March 6 on Monday. The Sensex ended 466 points higher at 36,487 and Nifty 50 index climbed 156 points to close at 10,764.