Markets likely to extend losses following negative global cues

Key benchmark indices may open with sharp losses following biggest sell-off in the financial markets across globe from Asia to Europe to the United States since 2016  on concerns of inflation. The SGX Nifty indicates that the Nifty could tumble 358 points at the opening bell and open around 10,337.  

Advanced Enzyme Technologies, AIA Engineering, Apollo Tyres, Bank of Maharashtra, Berger Paints, Castrol India, Dish TV, Future Retail, JSW Energy, Hero Motocorp, KEC International, Natco Pharma, Lupin, REC, Tata Chemicals, Punjab National Bank, Siemens, SpiceJet and Thermax are some of the key companies to announce their results today.  

Stock markets across Asia have tumbled on Tuesday, following steep losses on the Wall Street. Japanese benchmark Nikkei 225 Index has dropped 5.56%, its worst fall in the last 15 months. The index now stands at its lowest level since late October. Hong Kong’s benchmark Hang Seng Index has lost 4.23% and China’s Shanghai Composite has slid 1.85%. 

Back home, markets kicked off the week with a gap down opening owing to weak global cues. However, the intra-day trading activity was not horrible as bulls rallied to lift the index from lower levels. Nifty closed at 10,667, down by 0.87% and Sensex settled at 34,757, down by 0.88%. The broader indices showed some life as Nifty Small-cap index outperformed its peer, surging by 0.76%.  

In the US, it was Black Monday market crash, with the Dow recording its worst one-day drop in history. The CBOE volatility index experienced a momentous rally, climbing to its highest level since 2015. The index touched a session high of 38.80. The ‘fear index’ later pared gains to finish at 37.32 for a gain of 115.6%. The Dow Jones Industrial Average fell 4.6% and the S&P 500 dropped 4.10%. The Dow and the S&P 500 both turned negative for the year. The Nasdaq Composite Index nose-dived 3.78% to end at 6,968.  

The European stock markets extended their recent losing streak on Monday, as market participants worried inflation might kick in faster-than-expected. Additionally, the sentiment also took a hit after coalition negotiations between German Chancellor Angela Merkel’s Conservative Party and the Social Democrats broke down over the weekend. The CAC 40 of France plunged 1.64%, Germany’s DAX dropped 0.76% and FTSE 100 of the UK slumped 1.46%.