Indian stock markets are likely to open lower on Tuesday as global sell-off has intensified led by a bloodbath in US stock markets on Monday. We bring seven things that you must know before going to trade in Indian equities on Tuesday.
Indian stock markets are likely to open lower on Tuesday as global sell-off has intensified led by a bloodbath in US stock markets on Monday. Dow Jones Industrial Average, the benchmark US index, fell off a cliff on Monday, posting its biggest intraday point-decline ever in the history of American capital markets. Earlier yesterday, Indian stock markets finished lower on Monday with the headline indices Sensex and Nifty closing in red for the fifth straight day following the global sell-off in equity markets. BSE Sensex fell as much 309.59 points or 0.88% to end at 34,757.16 and NSE Nifty washed off 94.05 points or 0.87% to settle at 10,666.55. The S&P BSE Sensex plunged 545.95 points to hit a day’s low of 34,520.8 whereas NSE Nifty plummeted 173.8 points to hit a day’s low of 10,586.8 on Monday
Seven things that you must know before going to trade in Indian equities on Tuesday
- US stocks plunged in highly volatile trading on Monday, with both the S&P 500 and Dow Industrials indices slumping more than 4.0% as the Dow Jones notched its biggest intraday decline in history with a nearly 1,600-point drop and Wall Street erased its gains for the year, Reuters said in a report.
- The slumps in the benchmark S&P 500 index and the Dow Jones Industrial Average were the biggest single-day percentage drops since August 2011, a period of stock-market volatility marked by the downgrade of the United States’ credit rating and the euro-zone debt crisis.
- The Dow Jones Industrial Average fell 1,175.21 points or 4.6% to 24,345.75, the S&P 500 lost 113.19 points or 4.1% to 2,648.94 and the Nasdaq Composite dropped 273.42 points or 3.78% to 6,967.53. On Monday, the S&P 500 ended 7.8% down from its record high achieved on 26 January 2018, with the Dow down 8.5% over that time.
- The declines come after the Dow and S&P posted their biggest weekly percentage drops since January 2016 last week, and the Nasdaq posted its biggest weekly drop since February 2016.
- At one point, the Dow fell 6.3 percent or 1,597 points, the biggest one-day points loss ever. Even with the sharp declines, stocks finished above their lows touched during the session.
- The early indicator of NSE Nifty, SGX Nifty Futures faced a knee-jerk reaction in the early trades on Tuesday. The index plunged as many 380 points or 3.55% at 10,315.5 on the Singapore Stock Exchange on Tuesday, its lowest since 18 December 2017. This was the biggest intraday percentage drop since 9 November 2016.
- Meanwhile, Asian markets continue to witness selling pressure on Tuesday following Wall Street’s biggest decline since 2011 as investors’ faith in factors underpinning a bull run in markets began to crumble, Reuters reported.