Market Ahead, November 25: Top factors that could guide markets today

An overnight rally in the global equities owing to vaccine optimism and transition to Joe Biden's presidency in the US has set the stage for further gains in the Indian benchmark indices in today's session which are already ruling at their lifetime high levels. 

At 7:30 AM, the SGX Nifty was trading at 13,178 levels, up nearly 90-odd points from Nifty futures last close, indicating a gap-up start for the Indian markets today. The expiry of November series derivative contracts, scheduled for tomorrow, may meanwhile inject some volatility.

US stocks rallied overnight as the Dow breached the 30,000 level for the first time while the S&P also set a record closing high. Overall, the Dow rose 1.5 per cent, the S&P 500 gained 1.6 per cent and the Nasdaq added 1.3 per cent.

Asian stocks made early gains on Wednesday. Australia’s ASX 200 rose 0.77% and Japan’s Nikkei gained 1.8 per cent in early trading. Hong Kong’s main index rose 1.2 per cent.

In commodities, oil rose about 4 per cent on Tuesday to touch highs not seen since March. Brent crude settled at $47.86 a barrel, gaining 3.9 per cent.

Back home, investors are likely to continue the stock-specific play. They will also track the foreign fund flow after foreign investors poured in a record over $7.4 billion into stocks this month. This is already the highest-ever for a month both in local currency and US dollar terms. 

Market participants would also track the Union Cabinet meeting, scheduled for later today, where the Centre may consider a proposal to infuse Rs 6,000 crore into the National Investment and Infrastructure Fund. 

Shares of Tata Consultancy Services may also trade actively today since it is the last day to participate in the Rs 16,000-crore share buyback.

And now a quick look at other top news

The RBI has turned down the proposal of Muthoot Finance to acquire IDBI Bank's mutual fund business, saying sponsoring a mutual fund is not in consonance with the activity of an operating NBFC. Muthoot Finance had proposed to purchase 100 equity shares of IDBI AMC and IDBI MF Trustee Company held by the sellers for a total consideration of Rs 215 crore.

And, on the Covid front, India reported 44,276 fresh cases in the last 24 hours, taking its tally to 92.21 lakh. The country's death toll mounted to 1.34 lakh. Meanwhile, Sputnik V vaccine showed over 95 per cent efficacy 42 days after the first dose. RDIF's CEO yesterday saud the vaccine will cost less than $10 per dose in the international market.