Business

Markets Set To Open Lower On Weak Global Cues

Markets Set To Open Lower On Weak Global Cues

Japan's Nikkei 225 declined nearly 2 per cent and Chinese futures fell more than 5 percent

The domestic markets are likely to start the week on a shaky note due to negative cues on the global front. Trends on SGX Nifty indicate a negative market opening in India; the Nifty futures were trading with a cut of around 79 points or 0.64 percent at 12,193 on the Singaporean Exchange.

Wall Street fell in a broad sell-off on Friday, as investors fled equities on growing concerns surrounding the coronavirus outbreak, capping the S&P 500's worst week in six months. The Dow Jones Industrial Average fell 170 points to 28,989, S&P 500 lost 30 points to 3,295 and Nasdaq Composite dropped 87 points to 9,314.

Asian shares slid on Monday as the rampaging coronavirus virus infused fears in China and across Asia. Japan's Nikkei 225 fell nearly 2 per cent in early trade on Monday. Contracts on the S&P 500 Index fell more than 1 percent before paring losses and Japan's Topix slid. And Chinese futures fell more than 5 percent.

Trading volume are expected to be low as markets are shut in China, Hong Kong and South Korea for the Lunar New Year holidays.

Oil prices slumped a further 2% to multi-month lows on Monday as the rising number of cases of the new China virus and city lockdowns in China deepened concerns about demand for crude. Brent crude fell by $1.12 a barrel, or 1.9%, to $59.57.

HDFC, Dr Reddy's Lab and InterGlobe Aviation are among the major companies to declare their Q3 numbers during the day.

The Budget will be the key event of this week, considering the protracted economic slowdown and widespread expectations that the government will take measures to revive the economy. The flow of earnings will also keep the market participants on tenterhooks. The market will remain open on Saturday on account of the Budget.

The BSE Sensex had risen 271 points to 41,386 while Nifty 50 had closed with gains of 73 points at 12,180 on Friday on the back of modest fall in crude oil prices and positive Q3 earnings by bluechip companies, including L&T and Axis Bank.