Sensex, Nifty Set To Open Higher On Vaccine Hopes

(RTTNews) - Indian shares are seen opening higher on Wednesday after Wipro's Q1 margins and profits topped forecasts and the Indian Council of Medical Research (ICMR) said that two indigenous vaccine candidates for Covid-19 will enter human trials this month.

Meanwhile, Finance Minister Nirmala Sitharaman wrote in an English daily that India should not wait for a crisis for economic reforms, nor should a crisis be allowed to overwhelm India.

Benchmark indexes Sensex and the Nifty lost about 1.8 percent on Tuesday amid fears that rising coronavirus cases in the country will bring back lockdown.

The rupee closed at a two-week low of 75.43 against the dollar after data showed that retail price inflation breached RBI's tolerance band of 6 percent.

Asian stocks remain mostly higher this morning after Moderna Inc's experimental vaccine for Covid-19 showed an encouraging response in an initial safety trial and investors remained hopeful that EU leaders may agree on stimulus and deepening fiscal integration at a summit this week.

The dollar was subdued after an uptick in U.S. inflation and news of progress in vaccine development, while oil edged higher on data showing a drop in U.S. stockpiles.

U.S. stocks posted strong gains overnight as JPMorgan Chase and Citigroup reported better-than-expected results for the second quarter and investors pinned hopes for more fiscal stimulus.

The Dow Jones Industrial Average jumped 2.1 percent and the S&P 500 gained 1.3 percent to reach one-month highs, while the tech-heavy Nasdaq Composite index rose 0.9 percent.

European markets fell on Tuesday, with worries over simmering U.S.-China tensions and the reintroduction of coronavirus-related restrictions in California denting sentiment.

The pan European Stoxx 600 shed 0.8 percent. The German DAX dropped 0.8 percent and France's CAC 40 index declined 1 percent while the U.K.'s FTSE 100 inched up 0.1 percent, thanks to a weaker pound following disappointing May GDP data.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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