The benchmark indices are likely to see a negative start on Thursday. Nifty futures on the Singapore Exchange traded 322.50 points, or 1.99 per cent, lower at 15,913, signaling that Dalal Street was headed for a gap-down start on Thursday.
On Wednesday, the market ended its two-day-winning run to register a marginal decline.
The negative trend is likely to continue today as Wall Street retreated sharply in the overnight session after mounting fears of an economic downturn hit Wall Street shares and spurred a flight to havens including sovereign bonds. S&P 500 index plunged over 4%, the biggest daily drop in almost two years, and the technology-heavy Nasdaq 100 index tumbled more than 5%.
Asian shares tumble
Asian stocks tracked a steep Wall Street selloff on Thursday, as investors fretted over rising global inflation, China's zero-COVID policy and the Ukraine war.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 2% in early Asian trading hours, the first daily decline in a week. Japan's Nikkei tumbled 2.4%. The Hang Seng Index dipped 2.71 percent, or 559.39 points, to 20,084.89.The Shanghai Composite Index opened down 0.96 percent, or 29.51 points, to 3,056.47, and the mainland's second exchange, the Shenzhen Composite Index, saw a dip of 0.91 percent, or 17.76 points, to 1,923.78.
Stocks to watch
ITC, InterGlobe Aviation, TVS Motor Company, Airtel, Indraprastha Gas, LIC Housing Finance, Pidilite Industries
FII and DII data
Foreign institutional investors (FIIs) have net sold shares worth Rs 1,254.64 crore, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 375.61 crore worth of shares on May 18, as per provisional data available on the NSE.
Gold prices on Wednesday steadied near their lowest levels since late January pressured by a recovering dollar and an aggressive inflation stance from the U.S. Federal Reserve chief.
Spot gold was little changed at $1,815.39 per ounce, by 0831 GMT. U.S. gold futures slipped 0.2% to $1,814.70.
Oil prices fell 2.5% on Wednesday, reversing early gains as traders grew less worried about a supply crunch after government data showed U.S. refiners ramped up output, and as crude futures followed Wall Street lower.
Brent crude futures for July settled down $2.82, or 2.5%, at $109.11 a barrel. U.S. West Texas Intermediate (WTI) crude for June fell $2.81, or 2.5%, to $109.59 a barrel.
Rupee skids 17 paise
The rupee declined by 17 paise to close at its fresh lifetime low of 77.61 against the US dollar on Wednesday