Indian shares look set to open on a weak note Tuesday, with tech stocks likely to succumb to heavy selling pressure after an earnings warning from Snap sent Nasdaq futures tumbling.
Lingering concerns around China’s zero-COVID policy and increasing concerns over the potential for a recession may also serve to keep underlying sentiment cautious.
Benchmark indexes Sensex and the Nifty gave up early gains to end marginally lower on Monday as major steel stocks saw a massive sell-off post the levy of export duties over the weekend on iron ore and some steel intermediates.
The rupee recovered from record lows to settle 15 paise higher at 77.55 against the dollar following comments from RBI Governor Shaktikanta Das hinting at another rate hike in June.
Asian markets were broadly lower this morning while the euro held near one-month highs on expectations of an earlier-than-expected rate hike by the European Central Bank.
Gold steadied after hitting a two-week high while oil prices eased in Asian trade on demand worries.
U.S. stocks ended Monday’s session on more solid footing after President Joe Biden said he was considering easing tariffs on Chinese goods.
The Dow rallied 2 percent, the tech-heavy Nasdaq Composite climbed 1.6 percent and the S&P 500 surged 1.9 percent.
European stocks closed higher on Monday despite ECB Christine Lagarde signalling the end of negative interest rates.
The pan European Stoxx 600 jumped 1.3 percent. The German DAX rose 1.4 percent, France’s CAC 40 index gained 1.2 percent and the U.K.’s FTSE 100 advanced 1.7 percent.
Market Analysis
Sensex, Nifty Set To Follow Asian Peers Lower
2022-05-24 02:46:57
