Markets may nose-dive in opening trades following selloff in equities across the globe over sovereign crisis and global growth concerns.
The Nifty futures on the Singapore Exchange plunged 120 points, at 5,201.
Recession jitters inflated investors anxiety after series of weak economic data raised global growth concerns. On Thursday the European Central Banks held policy rates at 1.5% and resumed the purchase of government bonds after a hiatus of four months. The ECB also announced longer term funding for banks facing cash crunch.
Overnight, Wall Street indices were battered very badly on worries of US economic health. Dow Jones Industrial Average lost 4.3%, the biggest percentage drop since 2008. Even the Standard & Poor’s 500 Index declined 4.8% and the Nasdaq Composite Index shed 5.1%.
In Asia, the Hang Seng Index declined 4.2%, while the Shanghai Composite index plunged almost 2% and Japan’s Nikkei Stock Average also tumbled 3.4%.
Crude was heading for biggest weekly drop in three months on anticipation that growth may slow down. Brent Crude slipped 3% and was hovering around $107/bbl. Relatively saver havens like currencies such as Yen and Swiss franc, and bonds were temporarily attractive investor interest.
Analysts said that after a deep cut in opening trades markets may continue to remain under pressure until global conditions improve. India Infoline Financial Services in the morning note said, “A drop in crude is good for the Indian markets. All eyes will now be on the US monthly jobs report given the mounting concern over the health of the US economy."