Stocks poised for flat opening

·3-min read

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 5 points at the opening bell.

Global markets:

Overseas, Asian stocks are trading mostly lower on Monday as new coronavirus cases surge in the U.S. as well in countries across Europe. The Hong Kong market is closed on Monday for a holiday. The central committee of China's ruling Communist Party, led by Xi, is set to meet in Beijing from October 26 to 29 to discuss a proposal for national development for the next five years - from 2021 to 2025. The government sets these economic and social priorities every five years.

Investor focus on Monday was also likely on the deteriorating coronavirus situation in the West, with the U.S. recently reporting a record-breaking number of new virus cases.

Over in Europe, cases have also surged, with reports that France registered record daily coronavirus infections while Italy ordered bars to close early and shut public gyms in a bid to stem a resurgence in the virus. The Spanish government on Sunday declared a national state of emergency that includes an overnight curfew in hopes of not repeating the near collapse of the country's hospitals.

In US, the S&P 500 and Nasdaq closed modestly higher on Friday in choppy trading while the Dow ended lower on the day as investors weighed the potential for additional fiscal stimulus. The Dow Jones Industrial Average closed 28.09 points lower, or 0.1%, to 28,335.57, the S&P 500 gained 11.9 points, or 0.34%, to 3,465.39 and the Nasdaq Composite added 42.28 points, or 0.37%, to 11,548.28.

Intel shares fell 10.6% following the release of mixed quarterly numbers for the chipmaker. Gilead Sciences Inc rose as its antiviral drug remdesivir became the first and only drug approved for treating patients hospitalized with COVID-19 in the United States.

U.S. House Speaker Nancy Pelosi said it still was possible to get another round of COVID-19 aid before the November 3 election, but that it was up to President Donald Trump to act. Trump and Treasury Secretary Steven Mnuchin countered that Pelosi must compromise to get an aid package.

Trump and Democratic rival Joe Biden debated on Thursday for the last time to persuade the few remaining undecided voters 11 days before their contest, but while the debate was more toned down and substantive.

Domestic markets:

Back home, domestic equity benchmarks ended with decent gains after a volatile trade on Friday. Auto stocks were in demand. The barometer index, the S&P BSE Sensex advanced 127.01 points or 0.31% at 40,685.50. The Nifty 50 index gained 33.90 points or 0.28% at 11,930.35.

Foreign portfolio investors (FPIs) bought shares worth Rs 906.93 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 891.86 crore in the Indian equity market on 23 October, provisional data showed.



Source: Capitalmarket.com