Sensex, Nifty may open on a firm note

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Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 112 points at the opening bell. The Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC) meet began on 6 December and concludes on 8 December 2021. MPC’s interest rate decision will be disclosed on Wednesday, 8 December 2021. In the previous meeting, MPC kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4%.

Global markets

Overseas, Asian stocks are trading higher on Tuesday, bouncing back from Monday losses as Wall Street rallied on optimism that the omicron variant risk might not be as bad as feared.

US stocks rallied on Monday as investors shook off fears around the emerging threat of the Covid omicron variant.

White House Chief Medical Advisor Dr. Anthony Fauci had reportedly said that the initial data on the omicron variant was “encouraging,” though he cautioned that more information was needed to fully understand it.

Domestic markets

Back home, benchmark stock market indices fell sharply on Monday amid uncertainty around the new coronavirus variant and due to pressure from foreign institutional investors selling. The barometer index, the S&P BSE Sensex, tumbled 949.32 points or 1.65% to 56,747.14. The Nifty 50 index lost 284.45 points or 1.65% to 16,912.25.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,361.28 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,701.56 crore in the Indian equity market on 6 December, provisional data showed.