Indian markets set to cheer Asian rally as Omicron fears ease
By Vinu Lal
03:05, 8 December 2021
Indian stock markets are poised to sustain their momentum on Wednesday as investors across Asia began trading strongly with renewed vigour, disregarding concerns about the new Covid variant.
“The sharp upside bounce of Tuesday could cheer bulls to make a comeback from the lows. But, the present upside bounce could be short-lived and one may expect selling pressure to emerge from the crucial overhead resistance of 17550-17600 levels in the near term,” said Nagaraj Shetti, technical research analyst, HDFC Securities.
SGX Nifty futures, which represent Indian stocks in the Singapore Stock Exchange, opened trade firmly on Wednesday morning and was 0.17% up on similar sentiments.
“The up move in markets shouldn’t be attributed to the Covid-related update alone, said Ajit Mishra, VP-research, Religare Broking.
“Markets are also discounting a dovish stance from the monetary policy committee (that determines Indian interest rates) as the outcome of the meeting is scheduled on Wednesday. We expect volatility to remain high in the first half so it’s prudent to restrict leveraged positions and wait for further clarity,” Mishra added.
Wall Street indices closed Tuesday’s session with strong gains as investors regained their risk appetite from easing fears of Omicron as technology stocks delivered strong gains. Dow Jones surged 1.40%, S&P 500 rallied 2.07% while Nasdaq advanced 3.03% on Tuesday.
Things to note before trade
- Reliance Industries to partner with Abu Dhabi chemicals derivatives company RSC and invest $2bn (INR150.7bn) for a petrochemical production facility in the United Arab Emirates.
- Real-estate developer Shriram Properties, part of Shriram Group, will begin public subscription today which will conclude on December 10.
- Nestle India received approval from the government for the production-linked incentive scheme for processed fruits and vegetables.
- Vedanta group firm Hindustan Zinc has approved an interim dividend of INR18 per share for the financial year 2021-22, worth INR76.05bn.