Sensex, Nifty Likely To See Gap-down Opening

Indian shares look set to open notably lower on Tuesday, tracking weakness across global markets.

Shares of non-banking finance companies could be in focus after the Reserve Bank of India (RBI) superseded the boards of Srei Infrastructure Finance and Srei Equipment Finance and refereed them for insolvency proceedings owing to governance concerns and defaults by the aforesaid companies in meeting their various payment obligations.

Benchmark indexes Sensex and the Nifty rose about 0.9 percent on Monday to snap a four-day losing streak, while the rupee fell by 19 paise to close at 74.31 against the dollar.

Asian markets tumbled this morning as investors dumped stocks amid concerns about a potential U.S. government debt default, fresh U.S.-China tensions over trade and military tension around Taiwan.

The dollar hovered near a one-year high versus major peers as traders waited for key U.S. payrolls data due later this week for clues on the timing of a tapering of Federal Reserve stimulus and the start of interest rate hikes.

Oil held near a three-year peak after OPEC+ confirmed it would stick to an existing pact for a gradual increase in oil output.

U.S. stocks fell sharply overnight as high commodity prices, a surge in Treasury yields and worries about growth rendered the underlying mood bearish.

The Dow shed 0.9 percent, the S&P 500 fell 1.3 percent and the tech-heavy Nasdaq Composite lost 2.1 percent.

European stocks also ended lower on Monday on worries that the regulatory crackdowns and a collapse at Evergrande could hurt an already fragile Chinese economy and weigh on global growth.

The pan European Stoxx 600 dropped half a percent. The German DAX declined 0.8 percent, France’s CAC 40 index gave up 0.6 percent and the U.K.’s FTSE 100 eased 0.2 percent.