Darkening hopes of fiscal relief package in US may play spoilsport for D-Street bulls!
On Monday, Nifty continued with its upmove for the second consecutive session while the market participants were hoping that the bulls would win a hat-trick of gains; however, SGX Nifty is indicating a rough start on Tuesday amid darkening hopes of a fiscal relief package in the US before November 3 US Presidential elections. SGX Nifty is trading lower by 36 points at 11,873 levels.
Further, the market participants’ attention would be on the quarterly earnings today as FMCG behemoth HUL is scheduled to report its earnings today.
Mimicking their western peers, the majority of the Asian indices were trading in red on Tuesday. Hong Kong’s Hang Seng was trading with minuscule gains. While Japan’s Nikkei 225 was down by 0.29 per cent and China’s Shanghai Composite slipped 0.37 per cent.
Monday turned out to be a marvellous session for bulls as the Indian benchmark indices extended their winning streak for the second straight day in a row. Sensex and Nifty rallied 1.12 per cent and 0.94 per cent, respectively. The broader market performance was largely in-line with the benchmark indices with Nifty Mid-cap and Small-cap ending up by 0.77 per cent and 0.73 per cent, respectively. On the sectoral front, Nifty PSU Bank and Nifty Private Bank were the top gainers, while Nifty Pharma and Nifty Media were the top losers.
In the overnight developments, US stocks ended sharply lower as uncertainty continued to linger about the fiscal relief package ahead of a quickly approaching time limit set by House Speaker Nancy Pelosi, while the surging Coronavirus cases in Europe and North America rubbed salt in the wound. As a result, all three major stock market indices recorded a loss of over 1 per cent each on Monday. The tech-laden Nasdaq was the worst impacted as it tumbled 1.7 per cent, followed by S&P 500 and Dow. Meanwhile, in the economic news, the homebuilder sentiment climbed to another record high in the month of October. European indices slipped lower on Monday as a surge in the Coronavirus cases further dampened the sentiments.