The BSE Sensex and NSE Nifty are likely to open in red on Tuesday tracking SGX Nifty and weak global markets.
At 8.30 am (IST), SGX Nifty was down 36 points, or 0.46 per cent, at 7,815.50.
Asian shares dragged their feet on Tuesday after a healthcare mega-merger failed to impress investors while the dollar held firm near an eight-month high as investors grew more convinced of a US rate hike next month.
Wall Street shares edged down on Monday with Pfizer’s plan to buy Allergan plc in a $160 billion deal quickly drawing criticism from politicians as a tax dodge.
Back home, key benchmark indices were plagued with volatility on Monday on account of the derivatives expiry on Thursday. The India VIX registered an increase of 7.5 per cent to 17.15 in Monday’s trade. The Sensex and the Nifty both struggled in afternoon trade on selling pressure in banking, FMCG and metals stocks. BSE Sensex closed 49.15 points down at 25819.34, while NSE Nifty closed 7.30 points down at 7849.25.
Shares of Petronet LNG will remain in focus today as after months of intense negotiations, RasGas of Qatar has agreed to not to press for the $ 1 billion in penalty that Petronet LNG, India’s biggest import of liquefied natural gas (LNG), has to pay for buying only 68 per cent of the contracted 7.5 million tonnes this year.
(With inputs from agencies)