Domestic stock markets are likely to start Tuesday’s session on a negative note, tracking weakness in global markets. The Singapore Exchange Nifty futures – an early indicator of the National Stock Exchange (NSE) Nifty 50 benchmark index – fell as much as 110.35 points to 9,118.75 ahead of the opening of Indian markets. At 8:00 am, the SGX Nifty futures traded down 81.10 points – or 0.88 per cent – at 9,148.00.
Analysts believe the market will remain volatile in the near term, reacting to the spread of Covid-19, news regarding development of a vaccine and government’s measures to restart the economy.
Asian markets were little changed as investors await the release of Chinese inflation data expected to be out later in the day. Nikkei 225 was largely flat in early trade, while South Korea’s Kospi dipped 0.38 per cent. S&P/ASX 200 in Australia slipped 0.67 per cent.
Overnight, Dow Jones fell 0.45 per cent, while the S&P 500 gained 0.01 per cent and Nasdaq Composite climbed 0.78 per cent. The S&P 500 and Nasdaq closed slightly higher on Monday as investors looked beyond new spikes in coronavirus infections to focus on expectations that an economy crippled by mandated shutdowns will soon be re-opened for business.
Meanwhile, oil futures climbed in early trade on Tuesday, boosted by an unexpected commitment from Saudi Arabia to deepen production cuts in June to help drain the glut in the global market that has grown as the coronavirus pandemic crushed fuel demand. Brent crude futures climbed to a high of $30.11 a barrel and were up 0.9 per cent, or 28 cents, at $29.91 at 0021 GMT, clawing back some of the previous session’s losses.
On Monday, the S&P BSE Sensex index had ended 81.48 points – or 0.26 per cent – lower at 31,561.22 and the broader NSE Nifty 50 benchmark settled at 9,239.20, down 12.30 points – or 0.13 per cent – from its previous close.