Shares may extend recent losses

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 40.50 points at the opening bell due to ongoing weakness in global shares.

On the economic front, the all-India general Consumer Price Index (CPI) inflation rose to 2.92% in April 2019, compared with 2.86% in March 2019. The inflation based on CPI was 4.58% in April 2018. The Central Statistics Office (CSO) released the data after market hours yesterday, 13 May 2019.

Overseas, most Asian shares declined Tuesday following sharp decline in US stocks overnight as the trade war between China and the United States escalated.

China announced on Monday that it will raise tariffs on $60 billion worth of US goods, beginning on 1 June 2019. The goods targeted include a broad range of agricultural products. Last week, US President Donald Trump raised duties on $200 billion in Chinese goods to 25% from 10%.

US Trade Representative's office reportedly said it planned to hold a public hearing next month on the possibility of imposing duties of up to 25% on a further $300 billion worth of imports from China.

In US, stocks closed sharply lower Monday, as investors weighed an escalating tariff fight that could pose risks to the US, Chinese and global economies.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 1,056.01 crore on 13 May 2019, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1,057.91 crore on 13 May 2019, as per provisional data.

Domestic stocks dropped sharply on Monday, 13 May 2019, on negative global stocks. Domestic stocks registered losses for ninth straight trading session. Investors are concerned about global economic growth after trade negotiations between the US and China appeared at a deadlock. The barometer index, the S&P BSE Sensex, lost 372.17 points or 0.99% to 37,090.82. The Nifty 50 index fell 130.70 points or 1.16% to 11,148.20.

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