Sensex, Nifty Likely To Have A Cautious Opening

The domestic stock markets are likely to open on a cautious note, after a subdued closing in the pevious session, going by early indications from SGX Nifty trading. Trends on SGX Nifty indicate a flat opening for the index in India, with a 26-points gain. At 7:30 am, the Nifty futures were trading at 15,008, higher by 26 points or 0.17 per cent, on the Singapore Stock Exchange.

Asian stocks were set for a strong opening on Tuesday, helped mostly by global recovery prospects and the passage of a $1.9 U.S. trillion stimulus bill, shaking off a mixed Wall Street session after a big downturn in tech shares.

Australia’s benchmark S&P/ASX 200 index rose 0.92 per cent in early trading. Japan’s Nikkei 225 futures added 0.36 per cent and Hong Kong’s Hang Seng index futures rose 0.68 per cent.

The Dow hit a record intra-day high but the big tech stocks that have led Wall Street to scale successive peaks over the past year fell, with the Nasdaq closing down 2.41 per cent. The Nasdaq is now down 10.6 per cent from its February 12 record close, or more than a 10 per cent slide the market considers a correction.

The Dow Jones Industrial Average rose 306.14 points, or 0.97 per cent, to 31,802.44, the S&P 500 lost 20.59 points, or 0.54 per cent, to 3,821.35 and the Nasdaq Composite dropped 310.99 points, or 2.41 per cent, to 12,609.16.

Meanwhile, oil prices settled lower on Monday, retreating from a session peak above $70 a barrel after attacks on oil facilities in Saudi Arabia lifted prices that high for the first time since the COVID-19 pandemic began.

Brent climbed as high as $71.38 a barrel in early Asian trade, its highest since Jan. 8, 2020. It settled down $1.12 or 1.6 per cent at $68.24. U.S. West Texas Intermediate (WTI) crude settled down $1.04 or 1.6 per cent at $65.05. The session high was $67.98 a barrel, its highest since October 2018.

On Monday, the BSE Sensex had gained 35.75 points to 50,441.07 and Nifty rose 18.10 points to 14,956.20.