Weak opening on the cards

Local stocks are likely to see gap-down opening on weak global cues. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could crash 705 points at the opening bell.

The Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of January 2020 stood at 137.1, which is 2% higher as compared to the level in the month of January 2019. The cumulative growth for the period April-January 2019-20 over the corresponding period of the previous year stood at 0.5%.

The all India Consumer Price Index (CPI), slipped to 6.58% in February following easing food prices, according to data released by the National Statistics Office.

Overseas, stocks plunged in Asia on Friday, as fears of economic fallout from the coronavirus crisis deepened and the meltdown in the US, the world's biggest economy, battered confidence around the globe.

In US, stocks tumbled on Thursday with both the Dow Jones Industrial Average and the S&P 500 index suffering their worst day since the 19 October, 1987 Black Monday crash.

Stock prices plunged despite a move by the Federal Reserve to offer some $1.5 trillion worth of funding to keep credit flowing through financial markets to businesses as governments move to restrict the movement of people in an attempt to contain the coronavirus pandemic.

Back home, domestic stock market plunged on Thursday, tracking steep losses in other global equity markets. The S&P BSE Sensex, slumped 2,919.26 points or 8.18% at 32,778.14. The Nifty 50 index crashed 868.25 points or 8.30% at 9,590.15. The selloff was triggered by the World Health Organisation (WHO) declaring the novel coronavirus (COVID-19) as a global pandemic. Following this, the US President Donald Trump announced to ban all travel from Europe to the United States for 30 days, except from the United Kingdom, to contain coronavirus blow.

The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 3475.29 crore yesterday, 12 March 2020, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 3918.24 crore, yesterday, 12 March 2020, as per provisional data.

Powered by Capital Market - Live News