Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 72 points at the opening bell.
India's GDP contracted 23.9% in Q1 June 2020 compared to the same period last year, showed official data released by the National Statistics Office (NSO) on Monday. This was mainly on account of limited economic activity in the country during the quarter amid lockdowns to control the spread of the coronavirus pandemic. The economy expanded 3.1% year-on-year in the quarter ended March 2020.
Global markets:
Overseas, Asian stocks are trading mixed Tuesday as a private survey showed Chinese manufacturing activity in August expanding at its fastest pace in nearly 10 years.
The Caixin/Markit manufacturing Purchasing Managers' Index (PMI) came in at 53.1 for August, compared to 52.8 in July. PMI readings above 50 indicate expansion, while those below that signal contraction.
Japan's factory activity contracted at the slowest pace in six months in August. Tuesday's final au Jibun Bank Manufacturing Purchasing Managers' Index (PMI) rose to a seasonally adjusted 47.2 in August from 45.2 in July. It marked the slowest contraction since February, and also eclipsed a preliminary reading of 46.6.
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South Korea's manufacturing activity shrank at the slowest pace in six months in August. The IHS Markit purchasing managers' index (PMI) rose to 48.5 in August from 46.9 in July.
In US, stocks were mixed on Monday. Declines in bank stocks pressured both the Dow and S&P 500. The Dow slid 223.82 points, or 0.8%, to 28,430.05 and the S&P 500 dipped 0.2% to close at 3,500.31. JPMorgan Chase, Citigroup, Bank of America and Wells Fargo were all down more than 2%, following Treasury yields lower.
The Nasdaq Composite outperformed with a 0.7% gain and ended the day at 11,775.46. The Nasdaq got a lift after two big stock splits took effect Monday. Apple shares gained 3.4% as a 4-for-1 split took effect. Tesla shares added 12.6% following its 5-for-1 split.
Domestic markets:
Back home, key domestic benchmarks ended sharply lower on Monday, snapping a six-day rising streak. Rising COVID-19 cases, Sebi's new margin rule and India-China geopolitical tension weighed on stocks. The barometer index, the S&P BSE Sensex, dropped 839.02 points or 2.13% at 38,628.29. The Nifty 50 index fell 260.10 points or 2.23% at 11,387.50. The index jumped 3% in the the past six sessions.
Foreign portfolio investors (FPIs) sold shares worth Rs 3,395.49 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 680.88 crore in the Indian equity market on 31 August, provisional data showed.
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