Sensex, Nifty Poised To Extend Gains For Third Consecutive Day

The benchmark indices are likely to extend their gains for the third consecutive session, taking cue from the global front. Positive trends on SGX Nifty and cautiously higher Asian markets indicate a positive start for the markets. The Nifty futures were trading at 9,452, higher by 57 points, on the Singapore Stock Exchange around 7:30 am.

Asian shares were cautiously higher on Wednesday as investors paused ahead of the US Federal Reserve's policy decision. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.2 per cent for its third straight day of gains. Australia climbed 0.2 per cent and South Korea rose 0.3 per cent. Japan's markets were closed for a public holiday.

Wall Street's major indexes, however, edged lower on Tuesday as investors moved out of market-leading growth stocks, though a rotation into cyclical value stocks indicated hopes of economic revival as states began to relax restrictions enacted to fight the deadly COVID-19 pandemic. The Dow Jones Industrial Average fell 32 points and Nasdaq Composite dropped 122 points.

Meanwhile, Moody's Investors Service on Tuesday slashed India growth forecast for calendar year 2020 to 0.2 percent, from 2.5 percent projected in March. For 2021, Moody's expects India's growth to rebound to 6.2 percent.

Oil prices climbed on Wednesday, trimming some of this week's steep losses after US stockpiles rose less than expected and hopes grew for demand to pick up as some European countries and US cities moved to ease coronavirus lockdowns. US West Texas Intermediate (WTI) crude futures jumped to a high of $13.85 and were up 8.8 per cent, or $1.09, at $13.43 at 0038 GMT.

Axis Bank, post market hours on Tuesday, reported a net loss of Rs 1,387.78 crore for quarter ended March 31, on the back of higher provisioning amid the coronavirus pandemic. It had posted a net profit of Rs 1,505.06 crore for the corresponding period last year. The bank's net interest income (NII) - or the difference between interest earned and interest expended - rose 19.31 per cent year-on-year to Rs 6,808 crore.

Global cues and corporate results will be the main triggers for investors today. Investors will react to the March quarter result of Axis Bank. The April series derivative contracts expiry on Thursday is also likely to inject volatility in today's session.

The Sensex had ended Tuesday's session with a gain of 1.17 per cent and Nifty settled 1.06 percent higher.