The Indian headline indices Sensex and Nifty are likely to open lower amid weak domestic and global cues. The Asian markets extended losses on account of escalating trade tensions between the world's largest economies- US and China.
The Indian headline indices Sensex and Nifty are likely to open lower amid weak domestic and global cues. The Asian markets extended losses on account of escalating trade tensions between the world’s largest economies- US and China. The SGX Nifty ended in red at 11,147.50, down 37.50 from the previous close. The investors today will keenly watch the foreign institutional investors, rupee movement and crude oil prices among other things. On Monday, Sensex and Nifty tumbled for the ninth consecutive trading session for the first time in eight years. While the Sensex settled 372.17 points down at 37,090.82, Nifty ended down by 130.70 points at 11,148.20 from the previous close. We take a close look at key things which will drive the market today:
Rupee movement: The Indian rupees has been under pressure due to trade deadlock between two economic giants US and China. The foreign fund outflows and rising crude oil prices have also put pressure on Rupee. Yesterday, the Rupee ended at its more than two and a half month low at 70.51 against the US dollar, down by 59 paise over its last close. It had opened lower at 70.16 on Monday morning.
FIIs and DIIs: The foreign institutional investors (FIIs) sold shares of Rs 1,056 crore on a net basis, while domestic institutional investors (DIIs) purchased shares worth Rs 1,058 crore on Monday.
US-China trade war: After the world’s super power economy US imposed hiked tariffs on Chinese goods of $200 billion, China hit back at US and said it would impose higher tariffs on a range of its goods. China’s finance ministry said it plans to set import tariffs ranging from 5 percent to 25 percent on 5,140 US products of about $60 billion from June 1.
Crude oil prices: The crude oil prices plummeted after global stock markets cracked yesterday. The Brent crude futures were last seen at $70.27 a barrel, up 6 cents, from their last close. The US West Texas Intermediate (WTI) crude futures were at $61.17 per barrel, 12 cents higher from their last close.