SGX Nifty indicates positive start for Indian indices

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Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 30 points at the opening bell. Earlier, equity indices languished for the second straight session on Tuesday as investors pared back their exposure to riskier assets amid a cautious trend in global markets due to a fresh spurt in Covid-19 cases in many countries.

The 30-share BSE Sensex ended 185.93 points or 0.35% lower at 52,549.66. Similarly, the broader NSE Nifty tumbled 66.25 points or 0.42% to 15,748.45.

Pharma stocks will be in focus on Wednesday as companies including Cipla, Dr Reddy’s Laboratories, Sun Pharmaceutical Industries and Torrent Pharmaceuticals will collaborate for the clinical trial of the investigational oral anti-viral drug Molnupiravir for the treatment of mild Covid-19 in an outpatient setting in India.

There will be some reaction in oil & gas sector stocks as oil minister Dharmendra Pradhan said India’s fuel demand, hit by a deadly second wave of coronavirus, would recover to pre-pandemic levels by the end of this year. Banking stocks will be in limelight with a private report that helped by a faster pace of credit growth, the share of Indian private banks in total credit rose to 36.5% in the financial year ended March 2021 (FY21) from 35.4% a year ago.

The US markets ended higher on Tuesday lifted by technology stocks after an upbeat consumer confidence report. Asian markets traded in the green on Wednesday following overnight gains on wall street amid China is set to release its data on manufacturing activity.