Stocks may open higher

July 03,2020

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 45 points at the opening bell.

Overseas, Asian stocks rose on Friday as positive economic data raised optimism over the prospects of an economic recovery from the coronavirus pandemic.

China's services sector expanded in June as the easing of coronavirus-related lockdown measures revised consumer demand, a private survey showed on Friday, though companies continued to shed jobs. The Caixin/Markit services Purchasing Managers' Index (PMI) rose to 58.4, the highest reading since April 2010, from May's 55 reading.

In US, Wall Street closed higher and the Nasdaq reached an all-time closing high on Thursday buoyed by a record surge in payrolls, which provided assurance that the U.S. economic recovery was well under way. Tesla Inc jumped 8% after the electric car maker's second-quarter vehicle deliveries beat estimates.

US employers added a substantial 4.8 million jobs in June, and the unemployment rate fell to 11.1%, as the job market improved for a second straight month.

US markets are closed on Friday in observance of Independence Day.

Back home, domestic shares rallied on Thursday, mirroring positive global markets as increasing optimism for a safe and effective COVID-19 vaccine eased concerns about a second wave of infections. The barometer S&P BSE Sensex rallied 429.25 points or 1.21% at 35,843.70. The Nifty 50 index jumped 121.65 points or 1.17% at 10,551.70.

Foreign portfolio investors (FPIs) sold shares worth Rs 556.72 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 908.64 crore in the Indian equity market on 2 July, provisional data showed.

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