Sensex, Nifty Set For A Weak Opening

At 7:30 am, the Nifty futures were trading lower by 1.7 per cent on Singapore Stock Exchange

The domestic stock markets are likely to open in the red on the back of weak global cues. The US markets ended lower overnight and trends on SGX Nifty indicate a gap-down opening for the index in India, with a 218-points loss. At 7:30 am, the Nifty futures were trading at 15,076, lower by 218 points or 1.7 per cent, on the Singapore Stock Exchange.

The Nasdaq ended sharply lower on Wednesday after investors sold high-flying technology shares and pivoted to sectors viewed as more likely to benefit from an economic recovery on the back of fiscal stimulus and vaccination programs.

The Dow Jones Industrial Average fell 0.39 per cent to end at 31,270.09 points, while the S&P 500 lost 1.31 per cent to 3,819.72 and Nasdaq Composite dropped 2.7 per cent to 12,997.75.

The Japanese yen hit a seven-month low on the dollar on Thursday as hopes that vaccine distribution and more government stimulus will drive the U.S. economy into a solid rebound lifted the greenback and benchmark Treasury yields.

But the creep up in benchmark yields may weigh on Asian stocks, as wary investors recall last week's sell-off in government bonds that caused yields to spike, spooking equity markets and causing shares to tumble. By early Thursday, Australian shares had lost 1 per cent and E-mini S&P futures slipped 0.25 per cent.

Meanwhile, oil prices rose more than 2 per cent on Wednesday, boosted by a huge drop in U.S. fuel inventories and expectations that OPEC+ producers might decide against increasing output when they meet this week.

Brent crude rose $1.37, or 2.2 per cent, to settle at $64.07 a barrel. U.S. West Texas Intermediate (WTI) crude rose $1.53, or 2.6 per cent, to settle at $61.28 a barrel.

On Thursday, the S&P BSE Sensex closed above 51,000 mark, rising 1,147.76 points, or 2.28 per cent, to 51,444.65 and the Nifty rallied 326.50 points, or 2.19 per cent, to 15,245.60.