Dismal opening on the cards on weak global cues

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slump 368 points at the opening bell.

Global markets:

Overseas, Asian stocks are trading lower on Monday as the mounting risk of more aggressive rate hikes in the United States.

Profits at China`s industrial firms sank in July. Profits at China`s industrial firms fell 1.1% in January-July from a year earlier, wiping out the 1% growth logged during the first six months, the National Bureau of Statistics said on Saturday.

US stocks dropped sharply on Friday after Federal Reserve Chair Jerome Powell said in his Jackson Hole speech the central bank won`t back off in its fight against rapid inflation.

Fed Chairman Jerome Powell warned that rising interest rates will cause �some pain� to the U.S. economy, saying higher interest rates likely will persist �for some time.� He said the Fed`s decision in September �will depend on the totality of the incoming data and the evolving outlook.�

Domestic markets:

Back home, the key equity barometers ended with small gains on Friday. The barometer index, the S&P BSE Sensex, rose 59.15 points or 0.10% to 58,833.87. The Nifty 50 index gained 36.45 points or 0.21% to 17,558.90.

Foreign portfolio investors (FPIs) sold shares worth Rs 51.12 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 453.59 crore in the Indian equity market on 26 August, provisional data showed.

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