Markets are likely to see a negative start on account of weak global cues as. With the sell-off in US markets, the Nifty is likely to retest 6,750, in today’s trades.
At 0815 hrs, the SGX Nifty was down 31 points at 6,786.
Overnight, The Nasdaq suffered its biggest drop in two-and-a-half years on Thursday after another sharp selloff in biotech and momentum names. The S&P 500 also posted its biggest percentage loss since February 3, while the Nasdaq has dropped 7% from its closing high for the year, set on March 5.
The Dow Jones industrial average plummeted 1.62%, to end at 16,170. The S&P 500 lost 2.09%, to close at 1,833.
The Nasdaq Composite dropped 3.1% – its biggest daily%age loss since November 9, 2011 – to 4,054.
Mirroring US markets, Asian markets took a hit with the Japanese shares down to six-month lows on Friday as an escalating selloff on Wall Street spread to Asia and slugged markets that had been fairly resilient up to now.
Markets across Asia were spooked by the scale of the losses, with Korea down 0.9% in morning trade. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.7%.
Stocks to Watch
Infosys – The IT heavyweight will be in spotlight after heavy delivery based selling yesterday, ahead of its quarterly numbers expected next week.
Tata Teleservices – Tatas likely to invest another Rs 2,000 crore in their loss-making wireless telephony firm as equity within the next two years to service its loans
Suzlon Energy – Planning to sell non-critical assets worth Rs 1,000 crore in a year, primarily aimed at strengthening the company’s balance sheet
Natco Pharma – Formally asked the Indian patent office to deny U.S. drugmaker Gilead Sciences Inc’s new hepatitis C drug Sovaldi a patent in India
Tata Steel – India’s largest steel maker is working on absorbing its unit Kalimati Investment Co. Ltd, a move that may help shore up its stand-alone equity
IndusInd Bank – FIIs would now have to get prior permission from the Reserve Bank for buying shares as investment limit in the entity has reached the trigger limit