Markets are likely to start on a weak note as global indices will weigh on the investor sentiments. The early indicator, SGX Nifty was down 67points at 5,913 at 0820 hrs.
U.S. stocks slumped on Monday, with the S&P 500 suffering its worst drop since June, after weaker-than-expected data on the factory sector in the world’s largest economy provided investors with the latest reason to move away from riskier assets.
U.S. manufacturing grew at a slower pace in January as new order growth plunged by the most in 33 years, while spending on construction projects barely rose in December.
Investor sentiment soured sharply after the factory data, driving the cost of protection against a drop on the S&P to its highest level in nearly four months. The CBOE volatility index .VIX jumped 16.5 percent to 21.44, its highest level since December 2012.
S&P e-mini futures showed 2.999 million contracts traded for the session, the largest volume since February 25, 2013.
Asian shares tumbled on Tuesday though the dollar regained some footing, after disappointing US manufacturing data cast a pall over Wall Street and gave investors little reason to hope for stability in emerging markets after their recent rout.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell about 1.4% at its lowest level since early September.
Japan’s Nikkei stock average lost 2.9%, extending its declines into a fourth session.
STOCKS TO WATCH
Bharat Forge, Cummins India, GTL, Jubilant Food, PFC and Tech Mahindra will unveil their Q3 earnings.
Hero MotoCorp, India’s largest two-wheeled vehicle maker, said on Monday its sales in January rose 0.6 percent over the same period last year to 561,253.
Infrastructure Development Finance Company (IDFC) has said it is considering raising $ 300 million through foreign loans.
Essar infused $ 150 million (Rs 939 crore) into its bankrupt American coal company Trinity Coal.
Bharti Airtel is looking at ways to hive off its South Asian towers business. The company is likely to sell about 70-80 percent in the tower arm.