The domestic equity market is likely to open in red for the second consecutive session this week as indicated by SGX Nifty and on global cues.
Nifty futures on the Singapore Exchange traded 145 points, or .89 per cent, lower at 16,146.50, signaling that Dalal Street was headed for a gap-down start on Tuesday.
Meanwhile, Asian shares tumbled to their lowest in nearly two years on Tuesday as investors shed riskier assets on worries about higher interest rates and their impact on economic growth, while the dollar held near 20-year highs. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.8%, falling for a seventh straight session and extending declines to 17% so far this year. The Nikkei lost 0.9%, Australian shares shed 2.5% and Korean stocks lost 2%.
S&P 500 stock futures and Dow Jones futures both fell 0.5% and Nasdaq futures were down 0.6%. Overnight, US stocks extended Friday's bruising sell-off as investors rushed to protect themselves against the prospect of a weakening economy. Central banks in the United States, Britain and Australia raised interest rates last week and investors girded for more tightening as policymakers fight soaring inflation.
Earlier, the rupee on Monday slumped by 54 paise to close at a record low of 77.44 against the US dollar, pressured by the strength of the American currency overseas and unabated foreign fund outflows. Forex traders said risk appetite has weakened amid rising bond yields in the US and mounting concerns about inflation that may trigger more aggressive rate hikes by global central banks.
Gold prices also edged down on Monday; spot gold fell 0.1% to $1,880.56 per ounce, as of 0049 GMT, while US gold futures GCv1 were down 0.2% to $1,879.30.
Earnings announcement today
Asian paint, Adani Ports, Cipla, Vodafone Idea, Punjab National Bank, Petronet LNG, Relaxo Footwears, Indian Bank, Reliance Capital, Torrent Power, Birla Corporation, and Kalyan Jewellers are among the companies which will announce their earnings today.
Stocks in focus
Shares of NTPC, Adani Ports, RIL, Asian Paints, HCL Tech, JSW Group, etc. could be in focus today.
Oil Prices
Oil prices tanked more than 1 per cent on Tuesday, extending the previous day's steep declines, as coronavirus lockdowns in top oil importer China, a strong dollar and growing recession risks fed worries about the outlook for global demand.
Brent crude fell $1.31, or 1.2%, to $104.63, after slipping to as low as $103.19 a barrel. U.S. West Texas Intermediate crude fell $1.25, or 1.2%, to $101.84 a barrel after hitting an intraday low of $100.44.
Global financial markets have been spooked by concerns over interest rate hikes and recession worries as tighter and wider COVID-19 lockdowns in China led to slower export growth in the world's No. 2 economy in April.
