Market may open higher

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 118 points at the opening bell.

Finance minister Nirmala Sitharaman will today table the annual Economic Survey in Parliament for the growth projections for 2021-22. The Survey's gross domestic product (GDP) growth projections for 2021-22 and estimates for the current year (2020-21) will be watched.

Market is awaiting key reforms that could push growth and kickstart the capex cycle in the economy. The Union Budget 2021-22 would be presented on February 1. The Parliament session would be starting from today, 29 January 2021, and would be held in two phases. Subject to exigencies of government business, the session is likely to conclude on 8 April 2021.

Global markets:

Overseas, Asian stocks are trading higher on Friday as US stocks saw an overnight bounce from heavy losses suffered on Wednesday.

Japan's industrial output extended declines in December as factories struggled with a hit to demand from expanded COVID-19 lockdown measures globally. Official data released on Friday showed factory output declined 1.6% in December.

U.S. stocks closed higher on Thursday, bouncing from sharp losses in the prior session, thanks to a broad rally as earnings season got off to a strong start.

On the data front, gross domestic product in the U.S. grew at a 4% annualized pace in the fourth quarter. The annualized pace closed out a 2020 that saw GDP overall decline 3.5% for the full year and by 2.5% from the fourth quarter of 2019.

The number of Americans applying for unemployment benefits fell but remained at a historically high 847,000 last week, a sign that layoffs keep coming as the coronavirus pandemic continues to rage. Last week's claims fell by 67,000, from 914,000 the week before, the Labor Department said Thursday.

On the coronavirus front, biotech firm Novavax said that its vaccine was more than 89% effective in protecting against Covid-19. A study found that the vaccine appeared to be 85.6% effective against the U.K. variant. A separate phase two study in South Africa, however, showed the vaccine isn't nearly as effective against a new strain ravaging that country.

Domestic markets:

Back home, the domestic equity benchmarks ended with steep losses on Thursday, extending losses for the fifth straight session. Trading was volatile as the January 2021 F&O contracts expired on 28 January 2021. Global cues were weak as rising coronavirus cases and uneven distribution of vaccine rollouts triggered selling pressure. The barometer index, the S&P BSE Sensex, tumbled 535.57 points or 1.13% to 46,874.36. The Nifty 50 index lost 149.95 points or 1.07% to 13,817.55.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,712.51 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,736.92 crore in the Indian equity market on 28 January, provisional data showed.

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