Stocks may extend record run on strong global cues

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 68 points at the opening bell.

Global markets:

Overseas, Asian stocks advanced on Wednesday, following an overnight rally in the US stock market. Positive momentum in the race for a coronavirus vaccine has boosted global markets. Uncertainty in US politics has also eased after the Trump administration officially began the transition process to President-elect Joe Biden following weeks of delay.

In the United States, the Dow Jones industrial average closed at 30,046 points, up 1.5% or 455 points, hours after hitting the 30,000 mark for the first time ever. Strong gains across the market lifted the broader S&P 500 to a new record closing high. It finished 58 points or 1.62% higher, at 3,635 points.

Energy stocks, financial companies, basic materials producers and industrial firms led the rally, as investors anticipated a growth-friendly stimulus package.

US president-elect Joe Biden moved swiftly to make Cabinet choices after defeating President Donald Trump, who gave the go-ahead for Biden to start receiving daily intelligence briefings. Investors now await the FOMC's minutes from its last meeting due later today for clues on the direction of monetary policy.

The dollar index eased 0.11% to $92.12 against a basket of currencies.

Crude oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures up 1.09% to $48.27 per barrel.

Domestic markets:

Back home, domestic equity indices closed at record high level on Tuesday (24 November 2020), tracking positive global cues. All the sectoral indices on the NSE ended in the green. The barometer index, the S&P BSE Sensex, rose 445.87 points or 1.01% at 44,523.02. The Nifty 50 index advanced 128.70 points or 1% at 13,055.15. Both the indices attained record closing high levels.

Foreign portfolio investors (FPIs) bought shares worth Rs 4,563.18 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 2,522.11 crore in the Indian equity market on 24 November, provisional data showed.

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