Shares may tumble on weak global cues

Market is seen opening lower amid a broad global equity retreat that was fueled by a mounting currency crisis in Turkey. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 55 points at the opening bell.

Overseas, Asian shares tumbled on Monday after investor sentiment took a hit amid the slump in the Turkish currency, lira, on geopolitical developments. US stocks dropped on Friday, triggered by fears over the sell-off in the lira after US President Donald Trump said he had approved the doubling of metals tariffs against Turkey on Friday.

The lira's decline was the latest sign of turmoil in international economies, particularly emerging markets. The currency tumbled on worries over Turkish President Tayyip Erdogan's increasing control over the economy and deteriorating relations with the United States.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 510.66 crore on Friday, 10 August 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 457.83 crore on Friday, 10 August 2018, as per provisional data.

On the economic front, India's industrial production growth rebounded to five month high of 7% in June 2018, while recovering from a seven-month low of 3.9% in May 2018. The industrial production growth for May 2018 has been revised upwards from 3.2% increase reported provisionally.

Key benchmark indices logged modest losses on Friday, 10 August 2018, led by index pivotals State Bank of India (SBI), Reliance Industries (RIL) and ICICI Bank. The barometer index, the S&P BSE Sensex, fell 155.14 points or 0.41% to settle at 37,869.23. The Nifty 50 index fell 41.20 points or 0.36% to settle at 11,429.50. The Sensex settled below the psychological 38,000 level after falling below that level in early trade.

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