Market may extend recent gains

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could jump 176 points at the opening bell.

The third and final phase of Bihar election ended on 7 November 2020. The results will be declared today, 10 November 2020. The market will closely watch results as exit polls reportedly indicated that the Tejashwi Yadav-led Mahagathbandhan could get a majority in the Bihar election. The majority mark is 122. Most of the exit polls predicted RJD to again emerge as the single largest party.

Global markets:

Overseas, Asian stocks are trading higher on Tuesday as investors in the region reacted to positive developments overnight on the coronavirus vaccine front.

China's consumer price index rose 0.5% in October from a year ago, according to data from the country's National Bureau of Statistics. The producer price index for China declined 2.1% year-on-year in October, unchanged from a 2.1% drop in September.

In US, the Dow Jones Industrial Average and S&P 500 jumped on Monday as investors cheered trial data from drugmakers Pfizer and BioNTech indicating their Covid-19 vaccine is more than 90% effective. However, the Nasdaq Composite closed lower as traders rotated out of high-flying technology names that outperformed during the pandemic into more beaten-down value stocks.

While the vaccine study is still ongoing and requires approval, Pfizer and BioNTech said they had found no serious safety concerns so far and expected to seek U.S. emergency use authorization later this month.

The 90% effective rate from Pfizer and Germany's BioNTech was better than what the market was expecting. Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, has said that a vaccine that was 50% to 60% effective would be acceptable.

Domestic markets:

Back home, the domestic equity benchmarks surged on Monday, extending gains for the sixth trading session. The rally was broad based with banks, financials and IT stocks at the fore. The barometer index, the S&P BSE Sensex, rallied 704.37 points or 1.68% at 42,597.43. The Nifty 50 index spurted 197.50 points or 1.61% at 12,461.05.

Foreign portfolio investors (FPIs) bought shares worth Rs 4,548.39 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 3,036.31 crore in the Indian equity market on 9 November, provisional data showed.

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