The domestic equity market today is likely to be guided by stock-specific action, movement of rupee against the US dollar, oil prices, and FII inflows.
On the global front, investors have been spooked by sharp falls in US bond yields and an inversion of the US Treasury yield curve, which is widely seen as an indicator of an economic recession. The 10-year US Treasury yield dropped to 2.4 per cent, having shed 5 basis points on Monday.
British lawmakers on Monday wrested control of the parliamentary agenda from the government for a day in a highly unusual bid to find a way through the Brexit impasse after Prime Minister Theresa May’s EU divorce deal was rejected again.
The domestic equity market ended nearly a per cent lower on Monday on growing fears about a US recession and global economic slowdown. The S&P BSE Sensex fell 356 points or 0.93 per cent to settle at 37,809, while NSE's Nifty50 index ended at 11,354, down 103 points or 0.90 per cent.
Asian shares were shaky on Tuesday after US Treasury yields sank to their lowest since late 2017, further below short-term interest rates and adding to fears of a US recession.
MSCI’s broadest index of Asia-Pacific shares outside Japan was flat in early trade after two days of losses. Japan’s Nikkei rebounded 1.1 per cent after a 3.0 per cent fall on Monday.
Oil prices firmed on Tuesday, pushed up by ongoing supply cuts led by producer club OPEC and by US sanctions on Iran and Venezuela, but analysts warned that signs of a sharp economic slowdown could soon drag on crude markets.
STOCKS IN FOCUS
Jet Airways: Naresh Goyal’s reign at Jet Airways, the company he founded 25 years ago, ended on Monday as he stepped down as chairman of the board and transferred control to the lenders. Goyal's wife Anita and Etihad representative Kevin Knight also resigned.
Mindtree: The board of Mindtree will take a call on buyback in a meeting in Bengaluru today.
HDFC: The company has said it will raise up to Rs 3,000 crore by issuing bonds on a private placement basis to augment its long term capital resources
DLF: DLF has announced the launch of a Qualified Institutional Placement (QIP) programme to raise Rs 3,175 crore.
Newgen Software Technologies: The firm has approved to incorporate a wholly-owned subsidiary in Australia and to make initial investment upto 1.5 million Australian dollars in the proposed subsidiary, according to reports.
Suzlon Energy: Suzlon Energy yesterday said it has completed the sale of its two arms - SE Solar and Gale Solarfarms - to CLP Wind Farms for a total consideration of Rs 99.09 crore.