Rebound on cards!
If overnight strength at the Wall Street is any indication to go by, then Indian markets could open in green and put an end to its one of the lengthiest and steepest losing streak of seven straight sessions. Overnight, Dow and Nasdaq rallied 5 and 4.5 per cent, respectively on hopes that the Fed may consider an interim stimulus to address the problem of sinking markets. This could rub off on India too with hopes of RBI intervention. At the time of writing, SGX Nifty was up by 0.08 per cent, indicating that Nifty may open around 11,130 mark.
Asian markets were trading in green on Tuesday on the back of scintillating rally seen on Wall Street. China’s Shanghai Composite is leading the way as it has surged 1.24 per cent followed by Hong Kong’s Hang Seng and Japan’s Nikkei 225 which were up by 0.36 and 0.08 per cent, respectively.
Back home, the key benchmark indices witnessed a knee-jerk reaction in the last leg of the trade after a report emerged that two new Coronavirus cases have been detected in Delhi and Telangana, which erased all the intraday gains made during the day. As a result of this, the benchmark indices ended in a negative terrain for the seven straight day on Monday. Nifty slipped 0.62 per cent to 11,133 levels and BSE Sensex fell 0.40 per cent to 38,144 level. In the broader market, Nifty Mid-cap and Small-cap declined 0.68 and 1.20 per cent, respectively. Barring Nifty IT, all other sectors closed in red. Nifty Media and Nifty PSU Bank were the top decliners.
In overnight development, at the start of a fresh week, markets offered some relief to the market participants as US equities rebounded strongly on Monday after the worst witnessed since 2008. Sentiments on Wall Street turned cheerful on the back of expectation that the Fed may announce some stimulus. Further, a report from Credit Suisse indicated that the White House is likely to step in with fiscal policy to counter the Coronavirus impact. At the end of the day, Dow shoot up 1,294 points, S&P 500 rose 136 points and the tech-heavy jumped 385 points. European markets ended the volatile session on a positive note amid hopes about monetary easing measures from global central banks.