SGX Nifty wobbles in early action

Indian markets will have to brace for another rocky start despite buoyancy seen across the global markets. The key factor holding the bulls back is the 21-day nationwide lockdown announced by Prime Minister Narendra Modi on Tuesday to contain the spread of COVID-19. The market participants fear the economic fallout from the lockdown. SGX Nifty is trading 184 down at 7,669 levels.

Buoyancy is seen across Asian markets on the back of record rally seen overnight on Wall Street as the market participants are confident about a stimulus package announcement. Japan’s Nikkei 225 has rallied 5.73 per cent, Hong Kong’s Hang Seng has added 1.89 per cent and China’s Shanghai Composite has gained 1.85 per cent.  

Back home, the bulls were back on D-Street on Tuesday as the key benchmark indices gained over two and half a per cent gain. Despite a positive closed, it was not less than a roller coaster ride as the markets swung in both the direction before settling in green. Nifty closed above 7,800-mark and BSE Sensex settled at 26,674. The broader market ended on a mixed note with Nifty Mid-cap ending higher by 1.09, on the other hand, Nifty Small-cap ended down by 0.98 per cent. On the sectoral front, barring Nifty Realty, all other indices ended in green. Nifty IT topped the gainers’ list. 

Tuesday turned out to be a terrific turnaround for US markets as Dow recorded best one-day gain since 1933. The key catalyst helped bulls to zoom hopes of $2 trillion fiscal stimulus package. At the end of the day, Dow jumped 11.3 per cent, Nasdaq advanced 8.1 per cent and S&P 500 soared 9.4 per cent. European bourses have followed the suit as the stocks posted a strong rally on stimulus optimism.