Markets may continue to edge higher on Tuesday following gains in global peers. Trends in SGX Nifty suggest a positive opening of Indian benchmark indices. On Monday, The BSE Sensex closed at 38,973.70, up 276.65 points or 0.71%. The Nifty was at 11,503.36, up 86.40 points or 0.76%

Asia's stock markets edged higher on Tuesday, cautiously adding to gains made with an improvement in both US President Donald Trump's health and prospects for a US stimulus package, while bonds and the dollar nursed losses.




Trump returned to the White House on Monday after a three-night hospital stay fotreatment for covid-19 and said he felt "real good".

Asian markets on Monday unwound most of a Friday selloff in the wake of Trump's covid-19 diagnosis.

Banks and financial services related stocks are likely to be in focus. The government on late Monday appointed economists Ashima Goyal, Jayanth R Varma and Shashanka Bhide as members of the rate-setting Monetary Policy Committee(MPC) of the Reserve Bank of India(RBI). The monetary policy review scheduled last week was cancelled as term of previous members of MPC had expired.

Other rate sensitive stocks like auto and realty also may react to the development.

Housing Development Finance Corporation Ltd (HDFC) on Monday said the individual loan business has seen improvement in the second quarter, a sign that business is reverting to pre-covid levels. In a notice to the stock exchange, HDFC said that the loan disbursements during the September quarter were at 95% of the level in the corresponding quarter of the previous year. Individual loan approvals grew by 9% year-on-year (y-o-y)and loan applications received jumped by 12% during the same quarter.

Bakery and dairy products major Britannia Industries on Monday said its board has approved issuing bonus debentures and payment of dividend to reward its shareholders in such difficult and unprecedented times due to coronavirus pandemic.

Meanwhile, bond markets joined in the rally, with the safe-haven asset being sold - especially at the long end - in line with the optimistic mood. The yield on US 30-year government bonds rose 10 basis points to a four month high of 1.5930%.

Benchmark 10-year bond yields hit a more than five-week high, and held there in early Asian trade at 0.7784%.

In currency markets, the dollar was under pressure on other majors apart from the yen, since higher yields can often draw flows from Japan.

The yen last traded steady at 105.73 per dollar. The risk-sensitive Australian and New Zealand dollars edged ahead, with the Aussie last up 0.1% at $0.7191 and the kiwi at $0.6651.

The euro was just below a two-week high hit overnight at $1.1789.

Oil jumped more than 5% overnight and held there in Asia, supported by optimism surrounding Trump's health and a supply squeeze owing to a strike at Norwegian oilfields.