Market may see gap-down opening on weak global cues

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could drop 76 points at the opening bell.

Global markets:

Overseas, Asian stocks are trading lower on Tuesday after major indexes on Wall Street finished their worst day since June amid mounting rate hike concerns.

Japan`s manufacturing activity growth slowed to a 19-month low, as new orders continue to decline. The au Jibun Bank Flash Manufacturing Purchasing Managers` Index (PMI) fell to a seasonally adjusted 51.0 in August, down from July`s final of 52.1.

US stocks fell sharply Monday, in its worst day since June, as the summer rally fizzled out and fears of aggressive interest rate hikes returned to Wall Street.

Investors are anticipating what could be a volatile week of trading ahead of Federal Reserve Chairman Jerome Powell`s latest comments on inflation at the central bank`s annual Jackson Hole economic symposium.

Domestic markets:

Back home, the headline equity indices tumbled on Monday, tracking negative global cues. Rising dollar index and higher US 10-year bond yield spooked investors. The barometer index, the S&P BSE Sensex, slumped 872.28 points or 1.46% to 58,773.87. The Nifty 50 index lost 267.75 points or 1.51% to 17,490.70.

Foreign portfolio investors (FPIs) sold shares worth Rs 453.77 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 85.06 crore in the Indian equity market on 22 August, provisional data showed.

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