Domestic equity markets are likely to open in red on Tuesday tracking SGX Nifty and other Asian markets.
At 8.23 am (IST), SGX Nifty was down 98.50 points, or 1.25 per cent, at 7901.50.
Asian shares fell on Tuesday and the dollar struggled after twin surveys showed China’s manufacturing sector in the grip of its worst slump in several years, raising fresh fears about the health of its economy.
China’s official Purchasing Managers’ Index (PMI) fell to 49.7 in August from the previous month’s reading of 50.0, the weakest showing in three years.
Asian peers, Hang Seng, Nikkei 225 and Shanghai were also down 0.46 per cent, 2.38 per cent and 2.29 per cent at 21,571.57, 18440.28 and 3137.60, respectively.
Back home, the BSE Sensex on Monday closed 109.29 points, or 0.41 per cent lower at 26,283.09. NSE Nifty closed 30.65 points, or 0.38 per cent, down at 7971.30.
Monday’s government data showed gross domestic product expanded at an annual 7 per cent rate in the April-June quarter, matching China, but slower than provisional growth of 7.5 per cent in the previous quarter.
Debopam Chaudhuri, chief economist and vice president, research, ZyFin Research, said, “The GDP growth estimates are in line with expectations. We don’t see any significant recovery over the next two quarters with economic activity slumping further. Private consumption continues to remain less than 60 per cent of the GDP suggesting low aggregate demand conditions.”