SGX Nifty suggest big gap-down opening on dismal global cues
Published on May 06, 2022 08:32
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could tumble 283 points at the opening bell.
Overseas, Asian stocks are trading lower on Friday after an overnight drop on Wall Street sent the Dow Jones Industrial Average to its worst day since 2020. Technology stocks in the region sold off, following the tech-heavy Nasdaq Composite`s nearly 5% drop overnight stateside.
US stocks dropped sharply on Thursday amid a broad sell-off, as investor sentiment cratered in the face of concerns that the Federal Reserve`s interest rate hike the previous day would not be enough to tame surging inflation.
The focus now shifts to the U.S. Labor Department`s closely watched monthly employment report on Friday for clues on labor market strength and its impact on monetary policy.
In Europe, the Bank of England on Thursday raised interest rates to their highest level since the financial crisis and warned the economy is on course to shrink under pressure from double-digit inflation. The increase to 1% from 0.75% was backed by six of the bank`s nine policy makers, with three voting for a 50-basis-point move.
Back home, domestic equity benchmarks ended with tiny gains on Thursday, tracking mixed global cues. The barometer index, S&P BSE Sensex rose 33.20 points or 0.06% to 55,702.23. The Nifty 50 index added 5.05 points or 0.03% to 16,682.65.
Foreign portfolio investors (FPIs) sold shares worth Rs 2,074.74 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,229.31 crore in the Indian equity market on 5 May, provisional data showed.
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