SGX Nifty indicates strong opening

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could surge 236 points at the opening bell.

Global markets:

Overseas, Asian stocks are trading higher on Friday after China cut a key lending benchmark to support a slowing economy.

China cut its five-year loan prime rate (LPR) by 15 basis points on Friday morning, a sharper cut than had been expected, as authorities seek to cushion an economic slowdown, though it left the one-year LPR unchanged at 3.7%.

Wall Street ended lower after a volatile session on Thursday, with Cisco Systems slumping after giving a dismal outlook, while investors fretted about inflation and rising interest rates. Shares of the networking gear maker slumped 13.73% as it lowered 2022 revenue growth outlook, taking a hit from Russia exit as well as component shortage due to China lockdowns.

New claims for U.S. unemployment benefits unexpectedly rose last week. Initial claims for state unemployment benefits increased 21,000 to a seasonally adjusted 218,000 for the week ended 14 May 2022, the highest level since January, the Labor Department said on Thursday.

Domestic markets:

Back home, the domestic equity benchmarks tumbled on Thursday, amid weak global cues. The barometer index, the S&P BSE Sensex, tumbled 1,416.30 points or 2.61% at 52,792.23. The Nifty 50 index lost 430.90 points or 2.65% at 15,809.40.

Foreign portfolio investors (FPIs) sold shares worth Rs 4,899.92 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,225.54 crore in the Indian equity market on 19 May, provisional data showed.

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