Key benchmarks may correct on negative global cues

Indian shares are expected to open on a pessimistic note on the back of sell-off in the global markets. The SGX Nifty suggests that the Nifty could open lower by 217 points at 10,344 at the opening bell.  

BPCL, Bata India, Bank of Baroda, India Cements, Marico, MGL, HPCL, M&M, ONGC, SBI, Tata Steel, MOIL, National Aluminium, Oil India and Sun TV are some of the key companies to announce their results today.  

Stock markets across Asia have moved on the downside on Friday after a late sell-off on the Wall Street left the Dow Jones and the S&P 500 in the correction mode for the first time in two years. China’s Shanghai Composite has led the decline as it has dropped 3.93% followed by Hong Kong’s benchmark Hang Seng index which has lost 3.83% and Japanese benchmark Nikkei 225 index, which has slipped 3.40%.  

Back home, equity benchmark indices broke a seven-day losing streak on Thursday as investors looked for bargains on shares which were beaten down heavily earlier in the week. After a gap-up opening, markets continued to build on morning gains. However, in the second half, profit-booking emerged at higher levels and markets closed off the day’s high. The broader indices continued to show jubilant performance as Nifty Mid-cap and Small-cap indices gained 1.78% and 2.40%, respectively.  

The Dow Jones Industrial Average on Thursday marked its second worst decline in history as traders grew concerned about the inflation and higher interest rates. The Dow slumped 4.2% to close at 23,860 and the blue-chip benchmark is down by 10% from its recent peak scaled in late January. The S&P 500 declined 3.8% to finish at 2,581 and the tech-heavy Nasdaq Composite index slipped 3.9% to end the day at 6,777.   

European markets closed firmly in the negative terrain on Thursday. The Bank of England’s monetary policy committee voted unanimously to keep interest rates unchanged, which was on expected lines, but the central bank hinted at somewhat earlier and potentially higher-than-expected rate hikes. The CAC 40 of France dropped 1.98%, Germany’s DAX plunged 2.62% and the FTSE 100 of the UK lost 1.49%.