‘Terrific Tuesday on the cards today!

After a landslide fall in the previous trading session, the market is all set for a rebound on Tuesday, largely led by firm global cues. However, we believe that at higher levels, profit booking could emerge as ICRA has projected 20 per cent GDP contraction in June quarter and two per cent contraction in FY21 overall. Besides, the spread of novel Coronavirus has quickened in India in the past few days, becoming a major cause of worry. At the time of writing, SGX Nifty has jumped 154 points and trading at 9,394 level.  

Majority of Asian indices are closed for holiday, however, Hong Kong’s Hang Seng has surged 0.81 per cent on the back of strong rebound seen on Wall Street in overnight trade.

Back home, the markets ended Monday’s session on a dreadful note, owing to weak geopolitical tensions after US President Donald Trump threatened China to impose new tariff. BSE Sensex plunged 5.94 per cent to 31,715 and Nifty tumbled 5.74 per cent to 9,294 level. Monday’s steep fall resulted in erosion of investors’ wealth by Rs 5.8 trillion. In the broader market, Nifty Mid-cap and Nifty Small-cap declined by 4.40 and 3.23 per cent, respectively. Sectorally, barring Nifty Pharma, all the other sectoral indices ended in a negative territory. Nifty Private Bank, Nifty Financial Services and Nifty Bank were the top losers.   

In overnight development, US stocks after trading majority part of the day on a mixed note, turned higher in the last leg of trade and eked out modest gains. The tech-heavy Nasdaq outperformed its counterpart as it jumped 1.2 per cent, S&P 500 rallied 0.4 per cent and Dow added 0.1 per cent. Meanwhile, European markets ended lower in response to the escalating tensions between US and China, triggering heavy selling across the board.