Stocks poised for buoyant start

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 60 points at the opening bell.

Global markets:

Overseas, Asian stocks are trading higher on Wednesday following an overnight bounce on Wall Street as optimism grew over the prospect of more stimulus.

The Bank of Japan has decided to tap $6 billion in cash from a government account in a rare arrangement to ensure it has enough ammunition to combat any market disruptions caused by a recent resurgence in coronavirus infections. Under the arrangement announced on Wednesday, the central bank will buy dollar cash from the Ministry of Finance any time through to the end of March next year at the prevailing market exchange rate at the time.

Japan's exports declined 4.2% in November as compared with a year ago, according to Ministry of Finance data released Wednesday.

In US, stocks rose sharply on Tuesday as traders grew more optimistic about Congress passing another economic relief package. The Nasdaq closed at a record high.

Optimism over a $1.4 trillion U.S. spending package increased after House of Representatives Speaker Nancy Pelosi reportedly invited other top congressional leaders to meet late on Tuesday to hammer out a deal to be enacted this week.

Markets will now look to the U.S. Federal Reserve for new projections on whether the economy will suffer a double-dip recession or is on the cusp of a vaccine-inspired boom. The central bank is to release a statement on Wednesday.

Domestic markets:

Back home, the domestic equity benchmarks ended near the flat line on Tuesday. The S&P BSE Sensex, added 9.71 points or 0.02% to 46,263.17. The Nifty 50 index added 9.70 points or 0.07% at 13,567.85.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,484.09 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,666.79 crore in the Indian equity market on 15 December, provisional data showed.

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