Indian stocks look firm even as Asian markets open mixed
By Vinu Lal
03:05, 24 November 2021
Indian stock markets are all set for a firm start, riding on yesterday’s strength even as Asian shares open mixed. SGX Nifty futures, representing Indian stocks in the Singapore Stock Exchange, were trading up 0.25% on Wednesday morning trade on the expectation of easing oil prices.
Major economies including India, the US, China, Japan, South Korea and Britain on Tuesday agreed to release millions of barrels of oil from their respective strategic reserves as oil-producing countries dilly-dallied demand for more crude oil to stabilise prices.
Wall Street indices closed a volatile trading session overnight on a mixed note as gains in banks and energy stocks muted other sectoral losses. Dow Jones Industrial Average rose 0.55% while S&P 500 gained 0.17% and Nasdaq Composite dropped 0.5% on Tuesday.
“Indian markets could open mildly higher despite largely mildly negative Asian markets today and mixed US markets on Tuesday,” said Deepak Jasani, head of retail research, HDFC Securities. He added that the market may be pricing in a rise in interest rates beginning in the middle of next year, which is not positive for long-duration assets like technology stocks.
“Nifty gave a recovery of over 300 points after making a low of 17211. It closed at 17490, up by 80 points. Nifty is currently in a short-term downtrend and traders are suggested to exit longs in all upside rallies. Levels to watch out for Nifty today will be 17600 on the upside and 17200 on the lower side. A break in any direction will define the trend further,” Gaurav Udani, chief executive of ThincRedBlu Securities told Capital.com.
Key things to note before trade
- Bharat Petroleum Corporation will soon float a tender to build the country’s largest green hydrogen plant as it aims to achieve net-zero emissions for its operations by 2040
- Moody’s affirmed Bharti Airtel’s corporate family rating and senior unsecured rating
- The merger of Zee Entertainment Enterprises (ZEEL) and Sony Pictures Networks India is on track and “in the final stages of stitching up”, said Punit Goenka, chief executive of ZEEL on Tuesday
- The Indian arm of German auto component maker Schaeffler will invest over INR3bn ($40.3m) in the next four year years for the new facility
Read More: India’s oil, gas output rises in October as economy quickens