Bulls may run for cover as bears go on a rampage!

It is likely to be yet another weak session for the Indian markets on the back of scary global cues. In the early action, SGX Nifty is trading with deep cut of 95 points at the 10,774 level. As many as 106 companies, including big names such as REC, Titan, Pidilite and Indiabulls Housing, are due to announce their earnings for the quarter ended June 2019.  

The Asian markets were a sea of red on Tuesday amid selling spree on the Wall Street in overnight trading as China let the yuan slide in response to the recently announced additional tariffs by the US administration, which may further heighten trade tensions between the US and China. Hong Kong’s Hang Seng has dropped 2.82 per cent,  China’s Shanghai Composite index has lost 2.07 per cent and Japanese stock index Nikkei 225 has slipped 2.03 per cent.

Back home, the key equity benchmark indices were greeted by bears on the first trading session of the week. However, the indices managed to close off the day’s low but still managed to post losses of over a per cent with Nifty sliding 1.23 per cent and BSE Sensex plunging 1.13 per cent. The fall in the broader market indices was more severe with Nifty Midcap and Smallcap nosediving 1.40 per cent and 2.02 per cent, respectively. Among the sectoral indices, barring Nifty IT, all other indices ended with losses, with Nifty Media, Nifty Bank and Nifty Private Bank being top losers.

On the Wall Street, Monday saw a virtual carnage as the US stocks marked worst day of the calendar year 2019. Sentiments were hampered on the Wall Street after China, in repose to additional tariffs on goods from China, has reportedly refrained from buying agricultural products from the US. Moreover, China has allowed its currency to move lower against the US dollar in order to make its products more attractive to buyers. By the end of Monday’s session, the Dow sank 2.9 per cent, the tech-heavy Nasdaq plunged 3.5 per cent and S&P 500 tumbled 3 per cent.

The European equities plunged on Monday as China responded to the US administration's additional tariffs by allowing its currency to fall below a key level for the first time in over a decade even as disappointing Eurozone economic data added to the woes. Germany’s DAX declined 1.8 per cent, France’s CAC 40 plummeted 2.19 per cent and the UK’s FTSE 100 ended 2.47 per cent lower.