SGX Nifty indicates positive start for domestic equity markets

Domestic equity markets are likely to open higher on Monday tracking firm global cues. SGX Nifty, an early indicator of the Nifty50 index performance, also indicates a positive start for the index in India. The Nifty futures were trading 86.50 points or 0.58% higher at the 15,029 level at around 8.10 am (IST).

The benchmark equity index BSE Sensex on Friday settled at a fresh lifetime peak on Friday after the Reserve Bank kept interest rates unchanged but continued its accommodative stance and announced fresh liquidity measures to revive growth.

The 30-share BSE benchmark briefly crossed the 51,000-level, before ending 117.34 points or 0.23% higher at its fresh closing record of 50,731.63. Similarly, the 50-share NSE Nifty scaled the 15,000 mark during the day but shed some ground to close at its all-time high of 14,924.25, up 28.60 points or 0.19%.

Global markets:

Overseas, Asian stocks are trading mixed on Monday, as investors are expected to monitor shares of China’s tech giants following the release of new anti-monopoly guidelines over the weekend.

Investors will be watching Hong Kong listed shares of Chinese tech giants Alibaba, Tencent and JD.com on Monday. That comes after China’s State Administration for Market Regulation released a new set of rules that are set to put pressure on leading internet services in the country such as Alibaba’s Taobao or Tencent’s WeChat Pay.

In US, the Nasdaq and S&P 500 hit all-time highs on Friday on stronger-than-expected corporate results in the fourth quarter.

The Senate and House each passed a budget resolution on Friday, starting the reconciliation process that would allow President Joe Biden’s $1.9 trillion rescue package to get through the Democratic-held Senate with a simple majority. The package includes $1,400 stimulus checks, supplemental jobless benefits and Covid-19 vaccine and testing funds.

Meanwhile, U.S. President Joe Biden said his administration was prepared for “extreme competition” with China, though his approach would be different than his predecessor. Biden also said during the interview that he had not spoken to Chinese President Xi Jinping yet since he was sworn in last month.

On the coronavirus front, more contagious variants continue to spread throughout the U.S. On Friday Virginia health officials reported the state’s first case of the strain first identified in South Africa. On Sunday South Africa halted distribution of AstraZeneca’s vaccine given its minimal efficacy against the strain first identified in the country.

(With inputs from Capital Market)