Market may recover on bargain hunting

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 19 points at the opening bell.

Overseas, most Asian stocks were trading higher. Markets in Hong Kong and South Korea are closed for public holidays. Investors were cautious as the latest round of US-China tariffs revived fears the trade dispute would knock global growth, while crude oil was elevated near four-year highs after Saudi Arabia and Russia ruled out immediate production increases.

US stocks closed mostly lower Monday as the US-China trade war entered a new phase when tariffs on billions of dollars of products took effect. Investors were also looking ahead to the Federal Reserve's two-day monetary policy meeting, which wraps Wednesday and is likely to result in another interest-rate hike.

On the US economic data front, the Chicago Fed's national activity index came in at 0.18 in August, unchanged with the previous month.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 523.94 crore on 24 September 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1527.67 crore on 24 September 2018, as per provisional data.

The market extended losses to a fifth session on Monday, 24 September 2018, dragged by financials and automobiles. Global shares declined following renewed uncertainty over US-China trade relations. Monday marks the day when the latest round of tariffs which target products from both the US and China come into effect. Investors were also cautious ahead of a US Federal Reserve meet on Tuesday. The Sensex fell 536.58 points or 1.46% to settle at 36,305.02. The Nifty 50 index fell 168.20 points or 1.51% to settle at 10,974.90.

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