Investors on Dalal Street could be in for another 'Black Friday' session as early indications point towards a gap-down start for the benchmark indices amid weak global cues and spike in bond yields. Besides, a jump in crude oil prices could add to the selling pressure.
At 7.20 am, SGX Nifty was trading 213 points or 1.42 per cent down at 14,857.
In the overnight session, Wall Street indices ended sharply lower after remarks from Federal Reserve Chair Jerome Powell disappointed investors worried about rising longer-term US bond yields.
Powell’s comments, which did not point to changes in the Fed’s asset purchases to tackle the recent jump in yields led to a 1.533% spike in 10-year Treasury yield but was still lower than last week’s one-year high of 1.614%.
Following this, The Dow Jones Industrial Average fell 1.11% while the S&P 500 lost 1.34%. The Nasdaq Composite dropped 2.11%, down 9.7% from February's high.
Consequently, Asian stocks followed U.S. peers lower. Japan’s Topix index slid 1%, South Korea’s Kospi index fell 1.6% and Australia’s S&P/ASX 200 declined 1.3%. S&P 500 futures were lower by 0.4%.
In the oil markets, prices rose, adding to big gains overnight after OPEC and its allies agreed to not increase supply in April as they await a more solid recovery in demand from the coronavirus pandemic.
U.S. WTI futures climbed 0.3%, holding below a 13-month high hit on Thursday. Brent crude rose 0.2%, to $66.84 a barrel. Both contracts soared more than 4% on Thursday.
Now, a look at the stock-specific developments that are likely to sway the market today:
Set to be its biggest ever buyout, Wipro will acquire London-headquartered Capco in a $1.45 billion (over Rs 10,500 crore) deal.
Shares of Heranba Industries will list on the bourses today. The issue price has been fixed at Rs 627 per share.
Axis Bank on Thursday said one of its promoters, National Insurance Company, has asked it to classify the insurer as a public shareholder.
Mindspace Business Parks REIT plans to raise up to Rs 450 crore through the issue of debt securities.
The retail portion of the Ircon International offer for sale (OFS) garnered 98 per cent subscription. The unsubscribed portion will be allotted to non-retail investors, as demand by this segment had exceeded supply. On an overall basis, the OFS saw a 1.45x subscription.
Lastly, in an update on the primary market, the Rs 597-crore initial public offering of MTAR Technologies was subscribed 10.27 times on Thursday, the second day of the bidding process, on huge support from retail investors. The issue closes for subscription today.
 "Market Ahead, March 5: All you need to know before the Opening Bell")
