SGX Nifty indicates a positive start for Indian indices; key things to know before opening bell
Asian stocks traded mixed on Wednesday, a private survey showed accelerating Chinese services activity growth in July.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 83 points at the opening bell. Overseas, Asian stocks traded mixed on Wednesday, a private survey showed accelerating Chinese services activity growth in July. The Caixin/Markit services Purchasing Managers’ Index for July came in at 54.9 on Wednesday, up from June’s reading of 50.3.
US stocks moved higher on Tuesday and the S&P 500 set a new record high as broad market strength outweighed the travel names held back by Covid fears.
Domestic markets:
Back home, the benchmark indices closed at an all-time high level on Tuesday amid broad-based buying. The barometer index, the S&P BSE Sensex, surged 872.73 points or 1.65% at 53,823.36. The Nifty 50 index jumped 245.6 points or 1.55% to 16,130.75.
S Ranganathan, head of research, LKP Securities said, “Bulls pulled off the 16K mark on Tuesday on the Nifty effortlessly buoyed by positive newsflows on GST and export data as domestic fund houses poured Rs 28,000 crore during the first four months of the current fiscal. The journey past 16k today quite clearly has been led by the retail investors who have allocated more into equities even as FIIs sold worth Rs 9,500 crore during this period. The present rally is all the more significant since it provides enough opportunities to the new investor coming in now as several pockets of the economy still offer value going forward.”
Foreign portfolio investors (FPIs) bought shares worth Rs 2,116.60 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 298.54 crore in the Indian equity market on 3 August, provisional data showed.
Amar Ambani, senior president and research head, YES Securities said, “We reiterate our Nifty target of 18,000 by December 2021. Corporate balance sheets have been significantly strengthened with record equity raise in FY21. On the revenue front, the listed universe is on firm ground with an accelerated trend of unorganised to organised, digital super-cycle and sustained cost management. We expect the government to continue spending on infrastructure and fast track the reform agenda as we have seen with lowered corporate tax rates, PLI schemes, RBI support, strategic divestments and so on. With accommodative financial conditions worldwide, we see the mega rally in risk assets to continue.”