SGX Nifty indicates positive start for domestic markets

With a positive momentum hovering over its Asian peers, the domestic stock markets are likely to open on a positive note on Thursday.  

The benchmark indices across Asia and Australia traded with gains on Thursday, led by positive global cues. With victory in the US state of Georgia, the balance of power favours President-elect Joe Biden. The violence at Washington was shrugged off by investors’ confidence, which remained boosted with an expectation of large fiscal packages in 2021, thereby, pushing the markets further. Asian indices such as Shanghai Composite index, Nikkei, and KOSPI were up by 0.20 per cent, 1.84 per cent, and 2.31 per cent, respectively whereas, Hang Seng declined by 0.07 per cent.  

Dow and S&P 500 ended higher on Wednesday, surging to their respective all-time highs during Wednesday’s trading session, as investors remained bullish on financial & industrial stocks with an expectation that a democratic sweep in Georgia would pave way for a more fiscal stimulus as well as further infrastructure spending.  

Federal Open Market Committee (FOMC) issued guidelines that it would continue purchases of bonds at least at its current pace until the economy recovers, which further eased investors’ worries.  

Besides, crude prices steadied after Saudi Arabia unilaterally agreed to cut output.  

Meanwhile, SGX Nifty was up by 0.78 per cent, indicating a positive start for the domestic markets.