Indian stock indices are heading for a bright start on Wednesday even as several other Asian peers opened on a flat-to-mixed note over the new Covid variant fears.
SGX Nifty futures, which represent Indian stocks, opened strong on the Singapore Stock Exchange and were trading up 0.45%, an hour before the Indian markets opened.
Wall Street indices closed lower on Tuesday after Federal Reserve chair Jerome Powell indicated that the US central bank would consider speeding up its withdrawal of bond purchases as inflation risks rise. Dow Jones fell 1.86%, S&P500 lost 1.90% and the Nasdaq Composite dropped 1.55%.
A note from HDFC Securities Retail Research said Indian markets could open mildly higher in line with positive Asian markets today and despite sharply negative US markets on Tuesday.
Uncertainty on the new virus variants, normalising global growth and domestic inequalities are likely to remain headwinds for sustained growth momentum, said a Yes Bank economic research note on macroeconomic outlook.
Key things to note before trade
- Auto stocks in play as companies expected to release sales numbers for November
- Infosys to transfer Daimler’s high-performance computing (HPC) workloads used to design vehicles and automated driving technologies to one of Europe’s greenest data centres, Lefdal Mine Datacenter in Norway
- Zomato has announced the launch of Zomato Wings, a platform to connect investors with restaurants, to help them raise funds
- NTPC said 250 megawatt Unit-4 of its Nabinagar power plant will begin commercial production from Wednesday
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The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.