Markets may open with a gap-down tracking weak global cues
India’s benchmark equity indices are expected to open significantly lower, tracking a sharp sell-off in the US and Asian markets over concerns of rising bond yields. The SGX Nifty indicates that Nifty could open around the level of 10,611 with a gap-down of 107 points.
Bosch, Tata Motors, Cochin Shipyard, Colgate Palmolive, ENIL, Eveready Industries, Hudco, IFCI, Timken India and Ujjivan Financial Services are some of the key companies to announce their results today.
Asian stocks markets opened sharply lower on Monday as rising bond yields and the prospects of higher interest rates following the release of better-than-expected US jobs data dented investor sentiments. Japanese benchmark Nikkei 225 index has slipped below the important psychological mark of 23,000, Hong Kong’s benchmark Hang Seng has lost 1.88% and is trading below the 32,000-mark and China’s Shanghai Composite is trading lower by 9 points at 3,453.
Back home, a day after the Union Budget announcement, markets witnessed bloodbath on the streets as the crash eroded investors' wealth worth about Rs 4.6 trillion. The introduction of LTCG, declining risk appetite among global investors amid an increase in the US bond yields saw the frontline indices BSE Sensex tanking by 840 points to 35,067 and the Nifty index crashing 256 points to 10,761. This was the worst single-day fall since November 2016, when the government banned high-denomination currency notes, and the worst after-budget day performance since 2009.
In the US, the stocks tumbled sharply on Friday; with the Dow Jones Industrial plunging over 600 points. A rise in bond yields unsettled the stock market investors as the 10-year treasury note yield climbed to four-year high above 2.83%. The Dow Jones tumbled 666 points to close at 25,521, the Nasdaq slumped 145 points to finish at 7,241 and the S&P 500 lost 60 points to settle at 2,762.
In Europe, the stocks slipped sharply on Friday as investors digested further earnings reports. The banking stocks were under pressure following a weak set of earnings from Germany’s Deutsche Bank as the bank reported a net loss of about 497 million euros for 2017, which was its third annual consecutive loss. The stocks plummeted more than 11% over the week. Germany’s DAX slumped 1.68%, CAC 40 of France fell 1.64% and FTSE 100 of the UK slipped 0.63%.