Stocks poised for upbeat start
Published on Apr 26, 2021 08:24
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could advance 117 points at the opening bell.
Investors continue to watch the Covid situation in India. The Covid situation in India remains severe as the country continues to battle a startling rise in new coronavirus infections. On Sunday, nearly 350,000 new daily infections were registered.
The Biden administration has said it will immediately make raw materials needed for India`s coronavirus vaccine production available. The U.S. response comes after Britain, France and Germany also pledged aid to India over the weekend.
Overseas, Asian stocks are trading mixed on Monday as signs the world economic recovery was well on track bolstered risk appetite.
U.S. stocks rebounded on Friday as Wall Street reassessed concerns arising from news that the White House could seek a hike to the capital gains tax. Stocks were supported by data indicating an acceleration in economic activity and even faster growth in new home sales, as investors largely brushed off Thursday`s reports that President Joe Biden would propose a large increase on the capital-gains tax for the wealthiest Americans.
In U.S. economic data, the IHS Markit purchasing managers index for the manufacturing sector rose to a record 60.5 in April from 59.1 a month earlier, while the services sector PMI jumped to 63.1 from 60.4. A reading of more than 50 indicates an expansion in activity.
New home sales rose to a seasonally-adjusted annual rate of 1.021 million in March, the U.S. Census Bureau reported ? the fastest pace since 2006. Month-over-month, sales rose 20.7%. Also, the Census Bureau revised the sales figure for February up to a rate of 846,000, from the originally reported rate of 775,000.
Back home, the benchmark indices ended a volatile session with modest losses on Friday. Selling was triggered by concerns that the spike in COVID-19 cases in the country could derail the economic recovery. The S&P BSE Sensex, declined 202.22 points or 0.42% at 47,878.45. The Nifty 50 index declined 64.80 points or 0.45% at 14,341.35.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,360.76 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,695.59 crore in the Indian equity market on 23 April, provisional data showed.
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