SGX Nifty Futures Suggest More Downside

( – Indian shares are likely to open gap down on Monday on the back of extremely negative global cues. The rupee will once again come into focus after the currency plunged by 73 paise to close at a two-month low of 62.66 against the greenback on Friday reflecting a regional sell-off on weak Chinese data.

The benchmark S&P BSE Sensex fell more than a percent on Friday to post its biggest decline in three weeks after Reserve Bank of India (RBI) Governor Raghuram Rajan’s hawkish comments on inflation dashed hopes of a rate cut in the upcoming monetary policy review on Tuesday. The RBI is widely expected to maintain status quo on key policy rates after data showed both retail and wholesale inflation eased in December.

Wednesday’s outcome of the Federal Reserve’s monthly meeting and the expiry of derivative contracts scheduled on Thursday will also influence investor sentiment as the week progresses.

On the earnings front, Adani Ports, Allahabad Bank, Hindustan Unilever, Idea Cellular, Sundaram Finance, Tata Elxsi, Jindal Steel, JSW Steel, Maruti Suzuki, NTPC, Pidlite Industries, Sesa Sterlite, Bharti Airtel, Godrej Properties, ICICI Bank, India Infoline, IOB, Karur Vysya Bank, NALCO, Shriram Transport, Titan, TVS Motor, Arvind, Bank of India, Hero MotoCorp, JSW Energy, Neyveli Lignite, Shippers Stop, Siemens, Sterlite Technologies, Trent, Voltas, Bank of Maharashtra and Canara Bank are among the prominent companies that will unveil their quarterly results this week.

<b>Asian Markets </b>

The Asian markets are tumbling on concerns that a reduction in the U.S. central bank’s stimulus efforts may trigger capital outflows. Amid a sell-off in emerging market assets, investors are seeking safety in U.S. Treasuries, the Japanese yen and gold. Gold rallied to a two-month high, extending its longest run of weekly gains since September 2012, while the yen climbed to a seven-week high against the dollar.

China’s Shanghai Composite is down 0.9 percent, Hong Kong’s Hang Seng is losing 2.1 percent, Indonesia’s Jakarta Composite index is tumbling 2.7 percent, Japan’s Nikkei index is declining 2.5 percent and South Korea’s Kospi is down 1.7 percent. The Australian market is closed for a public holiday.

<b>U.S. And European Markets </b>

U.S. stocks tumbled on Friday as investors reacted to continuing turbulence in emerging markets amid worries about slower economic growth in China and a gloomier outlook for U.S. corporate profits as the Fed’s tapering program gets underway this week. The Dow lost 2 percent, the tech-heavy Nasdaq fell 2.2 percent and the S&P 500 slid 2.1 percent.

The European markets also fell sharply on Friday, with concerns about the Chinese economy and a renewed bout of turbulence in emerging market currencies weighing on the markets. The German DAX tumbled 2.5 percent, France’s CAC 40 shed 2.8 percent and the U.K.’s FTSE 100 Index dropped 1.6 percent.

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