Indian benchmark indices are likely to snap their losing streak to open in the green, hinted SGX Nifty even thought Asian markets trade deeply in the red. Here are eight key things to know before the market opens on Tuesday.
Indian benchmark indices are likely to snap their losing streak to open in the green, hinted SGX Nifty. On the Singapore Exchange, Nifty futures were trading higher, up 32.5points, at the 17,211.5 level. Domestic indices extended losses for the third session in a row. Nifty sank 258 points to close at 17,154, under the 17,200 mark. Sensex followed suit, crashing almost 900 points to end at 58,237.
“Bloodbath was seen in the global market as the fallout of Silicon Valley Bank was followed by turmoil at Signature Bank, keeping investors worried about the strength of the US banking system. Importantly, the Fed’s decision in the upcoming meeting will have a crucial impact on the market sell-off, as the consensus is reversing to no rate hike trajectory. Also, the US inflation due on Tuesday will have a vital impact in the short-term as the market anticipates a cool down from January levels,” said Vinod Nair, Head of Research, Geojit Financial Services.
Key things to know before share market opens
Wall Street Overnight
Sliding bank shares dragged Wall Street down on Monday with investors worried about contagion from the Silicon Valley Bank collapse, but trade was choppy and the Nasdaq Composite actually ended higher as some sectors benefited from hopes the Federal Reserve could ease up on interest rates hikes. Dow Jones Industrial Average fell 0.28%, the S&P 500 lost 0.15% and the Nasdaq Composite added 0.45%. The S&P Banking Index fell 7%, its largest one-day percentage drop since June 11, 2020.
Stocks in Asia-Pacific traded in red on Tuesday, despite Wall Street’s closure in the deep red. Japan’s Nikkei 225 traded lower by 2.50%, and South Korea’s Kospi tanked 2.23% in its first hour of trade. China’s Shanghai Composite and Shenzhen Component traded lower by 0.55% and 0.98%, respectively. Hong Kong’s Hang Seng index crashed 1.13%.