A rally on the cards on strong global cues

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could jump 248 points at the opening bell.

Global markets:

Overseas, Asian stocks are trading higher on Tuesday after stocks on Wall Street rallied overnight. Markets in mainland China and Hong Kong are closed for a holiday.

The Reserve Bank of Australia is set to announce its interest rate decision later Tuesday. As per reports, the Reserve Bank of Australia is likely to hike its benchmark interest rate by 50 basis points to 2.85%.

Wall Street`s three major indices rallied to close over 2% on Monday as US Treasury yields tumbled on weaker-than-expected manufacturing data, increasing the appeal of stocks at the start of the year`s final quarter.

US manufacturing activity grew at its slowest pace in nearly 2.5 years in September. The Institute for Supply Management (ISM) said on Monday that its manufacturing PMI dropped to 50.9 this month, the lowest reading since May 2020, from 52.8 in August.

Domestic markets:

Back home, the headline equity indices tumbled over 1% each on Monday, mirroring negative global markets. The barometer index, the S&P BSE Sensex, dropped 638.11 points or 1.11% to 56,788.81. The Nifty 50 index slumped 207 points or 1.21% to 16,887.35.

Foreign portfolio investors (FPIs) bought shares worth Rs 590.58 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 423.16 crore in the Indian equity market on 3 October, provisional data showed.

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