Investors around the globehave been excited by the prospect of a COVID-19 treatment
Domestic stock markets are likely to start the last trading session of the week on a positive note, tracking gains in Asian peers, where equities touched a seven-week high lifted by encouraging early results from a coronavirus (COVID-19) treatment trial. The Singapore Exchange (SGX) Nifty futures - an early indicator of the National Stock Exchange (NSE) Nifty index back home - jumped as much as 202.85 points to touch 9,752.00 ahead of the opening of Indian markets. At 8:00 am, the SGX Nifty futures were up 196.35 points - or 2.06 per cent - at 9,745.50.
Equities elsewhere in Asia jumped, with MSCI's broadest index of Asia-Pacific shares excluding Japan rising 0.8 per cent to its highest level recorded since mid-March. Japan's Nikkei 225 benchmark index, returning from a holiday the previous day, jumped 2.5 per cent to a seven-week high.
Asian stocks followed strong moves in US markets overnight, where shares rallied after Anthony Fauci, the top US infectious disease official, said Gilead's antiviral remdesivir will become the standard of care for COVID-19 after early results from a trial seemed to show it helped speed recovery. Investors around the globe have been excited by the prospect of a COVID-19 treatment because it may help countries emerge from lockdowns - even though investors' hopes don't seem to take into account regulatory and distribution difficulties should a treatment be found.
Moreover, the Federal Reserve policymakers on Wednesday left interest rates near zero and repeated a vow to do what it takes to shore up the economy, saying the ongoing coronavirus pandemic will “weigh heavily” on the near-term outlook and poses “considerable risks” for the medium term.
The S&P 500, Dow Jones Industrial Average and Nasdaq Composite indices ended 2.66 per cent, 2.21 per cent and 3.57 per cent higher respectively. US futures, however, gave up early gains to turn flat, indicating a lacklustre start on Thursday.
The markets are likely to be volatile in today's session as this is the last day of the April derivatives series. The market participants will also keep an eye on news developments on the Covid-19 front. As of April 30 morning, the number of confirmed COVID-19 cases in the country stands at 31,787 and the death toll is 1,008. During his interaction with chief ministers on April 27, PM Modi reportedly hinted that restrictions may continue in hotspots and containment zones.
On Wednesday, the S&P BSE Sensex index had added 605.64 points - up 1.89 per cent from the previous close - to end at 32,720.16 and the broader NSE Nifty 50 benchmark settled at 9,553.35, up 172.45 points (1.84 per cent) from the previous close.
The domestic financial markets will remain closed on Friday due to Maharashtra Day.
