Sensex, Nifty Likely To Open Firm Amid COVID-19 CrisisPage Visited: 18
The domestic stock markets are likely to start the week on a positive note, continuing with the gains seen in the previous week, going by early indications from SGX Nifty. Early trading in SGX Nifty indicate a positive opening for the index in India, with a 40 points gain. At 7:30 am, the Nifty futures were trading at 11,416, higher by 40 points or 0.4 per cent, on the Singapore Stock Exchange.
The week is likely to be volatile due to the upcoming August F&O expiry, according to analysts. The derivatives contracts for August are due to expire on August 27 i.e. Thursday.
Asian shares started cautiously on Monday on jitters over heady valuations though sentiment was underpinned by coronavirus hopes after the U.S. Food & Drug Administration (FDA) authorised the use of blood plasma from recovered patients as a treatment option.
Australian shares were flat while Japan’s Nikkei was reversed early losses to be last up 0.07 per cent. South Korea’s KOSPI, which has been on a slippery slope since hitting a more than two-year peak earlier this month, was mildly positive.
The S&P 500 and Nasdaq closed at record highs on Friday, as data pointed to some pockets of strength in the U.S. economy. U.S. business activity snapped back to the highest since early 2019 in August, according to IHS Markit surveys, as companies in both manufacturing and services sectors saw resurgence in new orders.
On Friday, the Dow Jones rose 0.69 per cent, the S&P 500 gained 0.35 per cent and Nasdaq Composite added 0.42 per cent.
Meanwhile, crude oil prices nudged higher on Monday as storms bore down on the Gulf of Mexico, shutting more than half the region’s oil production, although gains were capped by ongoing concerns about demand from coronavirus lockdowns.
Brent crude oil futures added 8 cents, or 0.2 per cent, to $44.43 a barrel by 0040 GMT while U.S. West Texas Intermediate crude was up 7 cents, or 0.2 per cent, to $42.41 a barrel.
On August 21, the BSE Sensex had gained 214.33 points or 0.56 per cent to close at 38,434.72 and the Nifty had climbed 59.40 points to 11,371.60. For the week ended August 21, the stock markets had climbed more than 1 per cent.