The domestic stock markets are likely to open flat, with a positive bias, on optimism over a coronavirus vaccine amid the ongoing tensions in US-China relations. Trends on SGX Nifty indicate a flat opening for the index in India, with a 12 points gain. At 7:30 am, the Nifty futures were trading at 10,662, higher by 12 points or 0.1 per cent, on the Singapore Stock Exchange.
Asian shares look set to continue a march upwards as optimism over a coronavirus vaccine carry weight over the ongoing spread of the disease and simmering U.S.-China tensions.
Australian S&P/ASX 200 futures rose 0.37 per cent in early trading. Japan’s Nikkei 225 futures added 0.07 per cent, and Hong Kong’s Hang Seng index futures rose 0.25 per cent.
U.S. stocks ended sharply higher on Wednesday, with the S&P 500 at its highest since early June, following promising early data for a potential COVID-19 vaccine and a strong quarterly report from Goldman Sachs.
The Dow Jones rose 0.85 per cent, while the S&P 500 gained 0.91 per cent and Nasdaq Composite climbed 0.59 per cent.
Meanwhile, oil prices slid on Thursday after OPEC and allies such as Russia agreed to ease record supply curbs from August, though the drop was cushioned by hopes for a swift U.S. demand pick-up after a bigger-than-expected drawdown from the country’s crude stocks.
Brent crude fell 13 cents, or 0.3 per cent, at $43.66 a barrel by 0015 GMT, and U.S. West Texas Intermediate (WTI) crude dropped 18 cents, or 0.4 per cent, to $41.02 a barrel. They rose 2 per cent the previous day, helped by the U.S. crude inventories drop.
On the stock front, Infosys is likely to be in the news after the country’s second largest information technology company reported, post market hours on Wednesday, a 2 per cent sequential (quarter-on-quarter) decline in net profit to Rs 4,233 crore in the April-June period,
On Wednesday, the S&P BSE Sensex and NSE Nifty 50 indexes erased gains of over 2 per cent to close marginally higher, as Reliance Industries slumped over 9 per cent from record highs. The Sensex ended 19 points higher at 36,052 and Nifty advanced 11 points to close at 10,618.