Nifty likely to open at 14,100; DCGI nod for COVID vaccines provide wings to bulls

The benchmark indices, Nifty and Sensex, gained nearly 2 per cent last week. The broader indices outperformed the benchmark indices as they surged by 3 per cent and 4 per cent, respectively. The weak dollar index has led to strong FII flows in the emerging markets, particularly in India. Indian equity markets have witnessed an inflow of over Rs 1,28,000 crore in the last few months with record inflow seen in the month of November 2020. 

The fresh week is likely to start on a cheerful note as the Indian drug regulator, DCGI has given approval to two COVID vaccines back to back. Vaccines produced by Oxford –AstraZeneca have received approval along with Bharat Biotech but for restricted use in an emergency situation. The hope that the vaccine is now becoming a reality has acted as music to the bulls' ears. Thus, reacting to this, SGX Nifty was up by 96 points, trading at 14,112 levels.  

The majority of the Asian indices are seen advancing on Monday. Hong Kong’s Hang Seng has gained 0.45 per cent while China’s Shanghai Composite added 0.22 per cent. In China, all eyes would be on Caixin Manufacturing PMI for December, which is all set to release today. Meanwhile, Japan’s Nikkei 225 has witnessed profit booking but was down by 0.44 per cent.