Domestic stock markets are likely to start the last session of the week on a positive note, a day after benchmark indices suffered their worst day in three weeks, as a record number of new COVID-19 infections in parts of Europe spooked investors across the globe. The Nifty futures trading on Singapore Exchange – an early indicator of the NSE Nifty 50 benchmark index – climbed to as high as 11,771.50, up 96.5 points – or 0.83 per cent – from its previous close, ahead of the opening of Indian markets. At 8:39 am, the SGX Nifty futures traded up 81.20 points – or 0.70 per cent – at 11,756.20.
Dragged by a selloff in IT and financial stocks, the Sensex ended 1,066.33 points (2.61 per cent) lower at 39,728.41 on Thursday, and the Nifty fell 290.70 points (2.43 per cent) to 11,680.35, as both indices halted their longest gaining streak in nearly six years.
A global selloff triggered by the rise in coronavirus infections across Europe and no sign of a vaccine anytime soon hurt the markets, say analysts.
European markets fell to two-week lows, knocked by tougher curbs in London and Paris to fight a second wave of the COVID-19 pandemic, with no breakthrough in Brexit trade talks also a dampener. Globally, concerns that a resurgence in the coronavirus pandemic could lead governments to again shut down economies spurred profit-taking, particularly after the recent rally.
Also, downbeat comments from US Treasury Secretary Steven Mnuchin that a stimulus deal was unlikely be made before the November 3 vote in the US hurt global market sentiment.