Bulls to come out with all guns blazing
Indian markets are set to open today after an extended weekend as Monday was a trading holiday. Over the last three days, news from the global shore has been soothing as COVID-19 cases appear to peak out in Europe and New York thereby, bring hopes of stabilisation. Further, icing on the cake is a historic stimulus announced by Japan’s Minister Shinzo Abe to combat the impact of Coronavirus on the economy. With this optimism, Indian markets will start the week and bulls might come out with all guns blazing. SGX Nifty is trading almost 150 points higher at 8,479 levels. However, the only concern amongst the market participants in their back of the mind would be that markets be able to hold these gains on closing basis, because lately, the markets have failed to hold any opening gains. Time would tell but the zone of 8,500-8,550 is a resistance level.
Asian indices are seen surging higher on Tuesday on the back of positive leads from Wall Street overnight and cheering stimulus package announced by Japan to rescue Coronavirus-hit, which is the largest ever. China’s Shanghai Composite has rose 1.47 per cent, Japan’s Nikkei 225 has gained 1.17 per cent and Hong Kong’s Hang Seng has edged up 0.52 per cent.
Back home, the markets continued to bleed red and declined over two per cent on Friday as Coronavirus cases showed no signs of easing. Nifty settled at 8,084 down by 170 points and BSE Sensex lost 674 points to close at 27,591. In broader market, Nifty Mid-cap and Small-cap dropped 1.34 and 1.55 per cent, respectively. Talking about the sectoral indices, barring Nifty Pharma and Nifty FMCG, all other indices ended in red, wherein, Nifty Private Bank and Nifty Bank were the top losers.
US markets made a blistering start to the new week. The sentiments on Wall Street turned positive amid Coronavirus curve which could be flattening, with death tolls in Italy and Spain appearing to slow and the intensity of the outbreak in New York displaying early hints of softening. Dow jumped 7.7 per cent, the tech-heavy Nasdaq soared 7.3 per cent and S&P 500 added seven per cent. European indices too ended higher as according to the report, death toll dropped over the weekend.