The Indian stock market is expected to open in the red as trends on SGX Nifty indicate a negative opening for the broader index in India with a loss of 88 points.
The BSE Sensex fell 365 points to 54,471, while the Nifty50 slipped 109 points to 16,302 and formed a bullish candle which resembles the Spinning Top kind of pattern formation on the daily charts, indicating indecisiveness among bulls and bears.
As per the pivot charts, the key support level for the Nifty is placed at 16,161, followed by 16,021. If the index moves up, the key resistance levels to watch out for are 16,423 and 16,544.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms that could impact Indian as well as international markets.
The S&P 500 ended below 4,000 for the first time since late March 2021 and the Nasdaq dropped more than 4% on Monday in a selloff led by mega-cap growth shares as investors grew more concerned about rising interest rates.
The Nasdaq closed at its lowest level since November 2020. Apple shares dropped 3.3% and were the biggest weight on the Nasdaq and the S&P 500. Microsoft Corp dropped 3.7% and Tesla Inc fell 9.1%.
The Dow Jones Industrial Average fell 653.67 points, or 1.99%, to 32,245.7, while the S&P 500 lost 132.1 points, or 3.20%, to 3,991.24, its lowest close since March 31, 2021. The Nasdaq Composite dropped 521.41 points, or 4.29%, to 11,623.25
Asian shares tumbled to their lowest in nearly two years on Tuesday as investors shed riskier assets on worries about higher interest rates and their impact on economic growth, while the dollar held near 20-year highs.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.8%, falling for a seventh straight session and extending declines to 17% so far this year. Across Asia, share indexes were a sea of red. The Nikkei lost 0.9%, Australian shares shed 2.5% and Korean stocks lost 2%.
Trends on SGX Nifty indicate a negative opening for the broader index in India with a loss of 88 points. The Nifty futures were trading around 16,203 levels on the Singaporean exchange.
Oil slips further on demand, financial markets worry
Oil prices edged lower in early Asian trade on Tuesday, adding to a 6% slump in the previous session as coronavirus lockdowns in top oil importer China and potential economic ructions in Europe fed worries about the demand outlook.
Brent crude fell 36 cents, or 0.3%, to $105.58 at 0059 GMT. US West Texas Intermediate crude fell 23 cents, or 0.2%, to $102.86 a barrel. Prices dropped over $1 earlier in the session but pared their losses. Both contracts are still up about 35% so far this year.
LIC IPO garners Rs 43,933 crore demand, subscribed 2.95 times on the final day.
The public issue of Life Insurance Corporation of India (LIC) has garnered good demand from investors as it received bids worth Rs 43,933.5 crore till May 9, the final day of bidding, which was more than double the issue size. The issue was opened on May 4.
The offer was subscribed 2.95 times as investors put in bids for 47.82 crore equity shares against an IPO size of 16.20 crore shares, as per the subscription data available on exchanges. The participation by policyholders remained quite strong as they bid 6.12 times the allotted quota and the value of shares subscribed for was Rs 12,034 crore.
Retail investors have invested Rs 12,456 crore in the IPO, the highest amount among investors during May 4–9. Their reserved portion was subscribed to 1.99 times and that of employees 4.4 times.
JPMorgan expects EM economic growth to slow sharply this quarter.
Economic growth in emerging markets is set to slow "sharply" this quarter, weighed down by China, Russia and the spread of tighter monetary conditions, JPMorgan analysts said on Monday.
"China’s adherence to its zero-COVID policy, Russia's recession and tightening global financial conditions are set to pull EM growth sharply lower this quarter," wrote Luis Oganes, head of currencies, commodities and EM research, and Jonny Goulden, head of EM local markets and sovereign debt strategy at JPMorgan.
Bitcoin falls to a 22-month low as stock markets tumble.
So-called riskier assets like tech stocks fell to their lowest levels since July 2021 on Monday as slumping equity markets continued to hurt cryptocurrencies, which are currently trading in line with so-called riskier assets like tech stocks. Bitcoin dropped to as low as $32,763.16 shortly before 1100 GMT, in its fifth consecutive session of falling.
The cryptocurrency has dropped 13 percent so far in May and has lost more than half its value since it hit an all-time high of $69,000 in November last year.
China's export growth hits a 2 year-low as virus curbs hit factories.
China's export growth slowed to single digits, the weakest in almost two years, while imports barely changed in April as tighter and wider COVID-19 curbs halted factory production and crimped domestic demand, adding to wider economic woes.
Exports in dollar terms grew 3.9% in April from a year earlier, dropping sharply from the 14.7% growth reported in March, although slightly better than analysts' forecast of 3.2%. It was the slowest pace since June 2020.
Results on May 10:
Asian Paints, Cipla, Vodafone Idea, Gujarat Gas, Ajanta Pharma, Cera Sanitaryware, Chalet Hotels, Chemplast Sanmar, Dishman Carbogen Amcis, Elantas Beck India, Electrosteel Castings, Kansai Nerolac Paints, Max Financial Services, Mahanagar Gas, MRF, Polycab India, Neuland Laboratories, Orient Electric, Reliance Capital, R Systems International, Shemaroo Entertainment, Tajgvk Hotels & Resorts, TD Power Systems, Torrent Power, Venky's (India), and Welspun India will release quarterly earnings on May 10.
FII and DII data
Foreign institutional investors (FIIs) have net offloaded shares worth Rs 3,361.80 crore, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 3,077.24 crore worth of shares on May 9, as per provisional data available on the NSE.