SGX Nifty indicates positive start for Indian indices

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Nifty futures were trading 88 points or 0.59% higher at 15,070 on Singapore Exchange, indicating a positive opening for BSE Sensex and Nifty 50 on Tuesday.

The benchmark equity indices Sensex and Nifty eke out gains on Monday after two sessions of decline as investors snapped up energy, IT and pharma shares. After fighting multiple bouts of volatility during the session, the BSE gauge Sensex settled 35.75 points or 0.07% higher at 50,441.07.

Intraday, the index rose as much as 667 points, but pared most of its gains tracking weakness in global markets.

The NSE Nifty ended higher by 18.10 points or 0.12% at 14,956.20. On the Sensex chart, L&T was the biggest gainer, rising by 3.43%. ONGC rose by 2.96%, HCL Tech by 2.22%, NTPC by 1.66%, Axis Bank by 1.6% and Infosys by 1.54%.

On the other hand, Bajaj Finance, IndusInd Bank, UltraTech Cement, Bajaj Auto and HDFC twins emerged as top laggards.

The US markets ended mostly lower on Monday with a continuous sell-off in high-flying tech shares put pressure on the market. Tech stocks remained the biggest losers, continuing the trend for the last few weeks.

High-growth stocks, which were among the best performers last year, are particularly vulnerable as higher rates reduce the value of future cash flows. Apple has fallen 15% in the past month, while Tesla has dropped 34% in that period. Pandemic bets Zoom Video and Peloton have tumbled 24% and 30% over the past month. However, Dow Jones Industrial Average ended higher as investors piled into economic comeback plays after Senate approval of a new Covid stimulus package. The Senate passed a $1.9 trillion economic relief and stimulus bill, paving the way for extensions to unemployment benefits, another round of stimulus checks and aid to state and local governments. The Democrat-controlled House is expected to pass the bill later this week. President Joe Biden is expected to sign it into law before unemployment aid programs expire on March 14.

Meanwhile, the Centers for Disease Control and Prevention said people who have been fully vaccinated against Covid-19 can meet safely indoors without masks, further boosting reopening hopes. The positive news boosted stocks banking on a strong economic recovery. On the economic data front, the Commerce Department said wholesale inventories spiked by 1.3% in January after climbing by an upwardly revised 0.6% in December. Street had expected wholesale inventories to surge up by 1.3% compared to the 0.3% increase originally reported for the previous month.

Nasdaq dropped 310.99 points or 2.41% to 12,609.16 and S&P 500 was down by 20.59 points or 0.54% to 3,821.35, while Dow Jones Industrial Average surged 306.14 points or 0.97% to 31,802.44.