Market may open higher

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 29 points at the opening bell.

Local stocks extended their losing run for the second day, led by weakness in banks and FMCG shares. The barometer S&P BSE Sensex fell 261.84 points or 0.83% at 31,453.51. The Nifty 50 index lost 87.90 points or 0.95% at 9,205.60.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,059.39 crore, while domestic institutional investors (DIIs), were also net sellers to the tune of Rs 995.30 crore in the Indian equity market on 5 May, provisional data showed.

Overseas, Asian stocks were trading mixed as investors weigh opening up of economies from the lockdown with caution. Markets in Japan and Thailand are closed on Wednesday for holidays.

Oil prices surged on Tuesday as they got a boost from optimism around ongoing production cuts and a recovery in demand as economies reopen. Brent settled 13.86% higher at $30.97 per barrel.

In US, stocks ended slightly higher Tuesday for a second straight day, but finished well off session highs, as investors watched business restrictions begin to ease in the U.S. and Europe and progress toward an early vaccine to prevent the further spread of the COVID-19 pandemic.

On the economic front, the U.S. trade deficit widened by almost 12% in March as the coronavirus pandemic grounded international flights, froze the global tourism industry and caused massive disruptions in the exchange of goods such as new cars and iPhones. Imports fell 6.2%, but U.S. exports tumbled an even deeper 9.6% to cause the trade gap to rise. The U.S. deficit rose to $44.4 billion in March from $39.8 billion in February, the government said Tuesday.

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