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Investors may extend selling due to negative global cues

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Trading of index futures on the stock exchange indicates that the Nifty could fall 24 points at the opening bell on negative global cues.

Overseas, Asian markets slipped further on Monday. Japan's markets are closed for a public holiday. China's markets tumbled following a week-long holiday and after its central cut banks' reserve requirements in a bid to support growth.

US stocks closed sharply lower Friday as worries about rising interest rates overshadowed the September jobs report, which pointed to strength in the labor market and the broader economy.

On the US data front, the September jobs report showed 134,000 jobs added in the month. The report showed the unemployment rate dropping to 3.7%. In addition, average hourly wage paid to American workers rose 0.3% an hour, while the 12-month rate of hourly wage gains came in at 2.8%. The wage data were of particular interest because of what it can communicate about inflation in the US economy.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 3370.14 crore on 5 October 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1902.07 crore on 5 October 2018, as per provisional data.

Key benchmark indices dropped sharply on 5 October 2018, amid a broad-based sell-off in index pivotals. The barometer index, the BSE Sensex, lost 792.17 points or 2.25% to settle at 34,376.99. The index lost 282.80 points or 2.67% at 10,316.45. Sentiment was impacted after the of India (RBI) changed its stance to calibrated tightening. Negative global stocks also weighed on the sentiment.

On the political front, the (EC) on Saturday announced the dates for the Rajasthan, Madhya Pradesh, Chhattisgarh, polls. While will go to the polls in two phases on November 12 and 20, the Madhya elections will be held on November 28. Polling in and Telangana will be held on December 7. Counting of votes will be held across all the five states on December 11.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, October 08 2018. 07:50 IST