SGX Nifty indicates positive start for Sensex, Nifty; key things to know before opening bell

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SGX Nifty: Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 23 points at the opening bell.

Global markets: Overseas, Asian stocks are trading mixed on Monday as a spike in coronavirus cases across Asia over the weekend hurt investor sentiment while oil hovered around 2-1/2 year highs.

Meanwhile, official data showed that China’s industrial profits for May slowed. Data released Sunday by China’s National Bureau of Statistics showed profits at China’s industrial firms rose 36.4% in May as compared with a year earlier. That was a slowdown from the 57% year-on-year growth posted in April.

US stocks rose on Friday with the S&P 500 building on its rally to records, as investors bet that higher inflation will be temporary as the economy continues to recover from the pandemic.

Bank shares jumped after the Federal Reserve announced the banking industry could easily withstand a severe recession. The Fed, in releasing the results of its annual stress test, said the 23 institutions in the 2021 exam remained “well above” minimum required capital levels during a hypothetical economic downturn. The decision cleared the way for the banks to raise dividends and buy back more stock, which was suspended during the pandemic.

A key inflation indicator that the Federal Reserve uses to set policy rose 3.4% in May, the fastest increase since the early 1990s, the Commerce Department reported Friday.

Investors are concerned about a spike in coronavirus infections in Asia with Australia’s most populous city of Sydney plunging into a lockdown after a cluster of cases involving the highly contagious Delta strain ballooned. Indonesia is battling record high cases while a lockdown in Malaysia is set to be extended. Thailand too announced new restrictions in Bangkok and other provinces.

Meanwhile, the World Health Organization on Friday urged fully vaccinated people to continue to wear masks, social distance and practice other Covid-19 pandemic safety measures as the highly contagious delta variant spreads rapidly across the globe. WHO officials have said the variant, first found in India but now in at least 92 countries, is the fastest and fittest coronavirus strain yet, and it will “pick off” the most vulnerable people, especially in places with low Covid vaccination rates.

Domestic markets: Back home, key equity indices ended a lacklustre trading session with modest gains on Friday. The S&P BSE Sensex, rose 226.04 points or 0.43% to 52,925.04. The Nifty 50 index added 69.90 points or 0.44% to 15,860.35.

Foreign portfolio investors (FPIs) sold shares worth Rs 678.84 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,832.76 crore in the Indian equity market on 25 June, provisional data showed.

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