MUMBAI: Indian equities may see another day of gains amid volatility on Tuesday. The SGX Nifty futures traded 0.3% higher in early deals, indicating a gap-up opening for Indian benchmark indices.
On Monday, Reliance Industries and IT stocks helped the Sensex settle 195 points higher on Monday, while Nifty closed above 12,900.
US equity futures and Asian stocks were higher on Tuesday after the initiation of a formal transition process to president-elect Joe Biden. General Service Administration has acknowledged Biden as the apparent winner of the presidential election.
Stocks opened higher in Japan and rose in Australia. Overnight, US equities had closed higher, with tech shares lagging and small caps jumping. Investor sentiment got a boost following positive development on the vaccine front.
British drugmaker AstraZeneca, a collaborator with Oxford, said on Monday an initial analysis of trials in the UK and Brazil showed it was on an average 70.4% effective in preventing covid-19. Of the two dosing regimens tested, the vaccine was 90% effective when half a dose was given first, followed by a full dose a month later.
Sentiment was also upbeat after news reports suggested that Biden plans to nominate former Federal Reserve Chair Janet Yellen to be Treasury secretary.
Back home, analysts expect a volatile session amid expiry of future and operations for November series later this week.
“Markets are currently seeing time-wise correction while we’re seeing noticeable buying in index majors on every dip. Going ahead, upcoming derivatives expiry, global cues and updates on COVID-19 will remain in focus,” said Ajit Mishra, VP – Research, Religare Broking Ltd
AU Small Finance Bank will be in focus after it reported selling 4.46% stake in Aavas Fin.
Shares of Reliance Industries will also be investors’ radar after the ET reported that it is set to raise $1.5 billion in overseas loans to refinance existing facilities. The company in talks with Citigroup, SBI, MUFG, HSBC, Standard Chartered Bank for fund raise.
Ingersoll Rand India has said its promoter Ingersoll Rand Inc. will sell up to 4.52% stake or 14.26 lakh shares through an offer for sale. The floor price of ₹578.6 per share is at a 12% discount to Monday’s closing price.
GMR Kamalanga Energy, a step-down subsidiary of GMR Infra, is required to pay claims of ₹1,005 crore to SEPCO Electric Power Construction Corp. towards project payments, prolongation costs, as confirmed by an arbitration tribunal.
Bloomberg contributed to the story.