Indian shares look set to open sharply lower on Monday as investors await the latest batch of earnings, a slew of economic data releases and the outcome of central bank meetings in the United States and England.
The monthly collection under the Goods and Services Tax (GST) has hit a record high of Rs 1.68 lakh crore in April 2022, while foreign exchange reserves continued to decline for the seventh consecutive week, separate reports showed.
Analysts expect pressure on liquidity as the LIC IPO hits markets on May 4. Despite reduced size, the IPO is going to be the biggest in the history of India’s capital markets.
Asian markets were broadly lower this morning ahead of this week’s key Fed meeting and the monthly U.S. employment data release. The U.S. central bank is widely expected to raise interest rates by 50 basis points.
The Japanese yen hit a new 20-year low after the Bank of Japan maintained its ultra-easy monetary policy.
Oil prices slipped as investors weighed the impacts of China’s measures to contain the Covid outbreak and moves by Europe to cut its reliance on fuel from Russia.
U.S. stocks nosedived on Friday after Amazon reported a surprise loss and issued weak revenue guidance for the second quarter, adding to concerns over higher interest rates, the Russia-Ukraine conflict and Covid-related shutdowns in China.
The tech-heavy Nasdaq Composite plummeted as much as 4.2 percent to reach its lowest closing level since late November 2020, while the Dow plunged 2.8 percent and the S&P 500 slumped 3.6 percent.
European stocks closed higher on Friday amid another day of busy earnings. The pan European Stoxx 600 climbed 0.7 percent.
The German DAX rose 0.8 percent, France’s CAC 40 index edged up 0.4 percent and the U.K.’s FTSE 100 added half a percent.
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