Nifty futures traded on the Singapore Exchange (SGX) rose nearly 90 points today, tracking firm global markets, on hopes that Europe’s policymakers would take steps to shore up the region’s banking system.
Nifty futures expiring in October gained 1.87 per cent to close at 4,863.50. The contracts touched a high of 4,888 and a low of 4,824.50.
This has raised hopes that the Indian equities market is likely to open up tomorrow, as the Nifty Futures traded on SGX mimics the S&P Nifty in India.
Trading on Indian stock exchanges was closed on account of Dussehra. Yesterday, the 50-stock Nifty index had closed 0.44 per cent lower at 4,751.30 on the National Stock Exchange. The 30-stock Sensex of the Bombay Stock Exchange had closed down 0.46 per cent, at 15,792.41.
Major Asian markets climbed today, as optimism grew that European policymakers were making progress on concrete plans to help stressed banks.
Japan’s Nikkei 225 rose 1.7 per cent, Hong Kong’s Hang Seng surged 5.7 per cent, South Korea’s Kospi advanced 2.6 per cent and Singapore’s Straits Times leapt 2.9 per cent.
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Market relief was building after European Commission president Jose Manuel Barroso said the EU's top executive body proposed a coordinated recapitalisation of banks, amid the region's sovereign debt crisis.
"News continues to move in a positive direction in Europe," said Jack de Gan, chief investment officer at Harbor Advisory Corp in Portsmouth, New Hampshire. "The core of the problem there relates to banks, so the commentary coming out about recapitalisation is very positive.”
At 6:15 pm here, major European markets were trading higher, but off their session’s highs after the European Central Bank kept interest rates on hold. UK’s FTSE 100 was up 2.3 per cent, Germany’s DAX had gained 1.8 per cent and France’s CAC 40 had risen 2.6 per cent. The Dow and S&P 500 futures were also trading up.