Indian shares look set to open a tad lower on Monday amid fears that the U.S. banking turmoil will lead to tighter lending standards that will cripple small businesses and eventually send the world’s largest economy into a recession.
Amid lack of any domestic triggers, traders look forward to this week’s Federal Reserve meeting and forward-looking guidance.
A weakening dollar and falling oil prices may help limit the downside to some extent.
Metal stocks could be in focus after China’s central bank cut the CRR by 25 basis points to spur economic growth.
Oil and energy stocks may also see increased activity after oil prices suffered their biggest weekly losses in months.
Asian markets followed Wall Street lower, but the downside was limited on news that Credit Suisse will be taken over by Swiss banking giant UBS.
A senior official at China’s central bank said the collapse of Silicon Valley Bank showed how rapid monetary policy shifts were having spillover effects.
The dollar weakened in Asian trade and gold prices traded just below their strongest levels in 11 months, while oil prices were seeking rebound after last week’s steep losses.
U.S. stocks fell sharply on Friday as regional banks resumed slide on concerns about turmoil in the U.S. banking sector.
In economic releases, U.S. industrial production stagnated in February and consumer sentiment fell for the first time in four months in March while short-term inflation expectations fell to the lowest level in nearly two years, separate reports showed.
The tech-heavy Nasdaq Composite shed 0.7 percent to snap a four-day winning streak, while the Dow tumbled 1.2 percent and the S&P 500 lost 1.1 percent.
European stocks also closed lower on Friday, dragged down by banks.
The pan European STOXX 600 declined 1.2 percent. The German DAX fell 1.3 percent, France’s CAC 40 index dropped 1.4 percent and the U.K.’s FTSE 100 lost 1 percent.
Market Analysis
Sensex, Nifty Seen Tad Lower At Open
2023-03-20 02:30:24
