Markets are expected to slide in opening trade due to sell-off in global equities as concerns of radiation exposure kept growing. The Nifty futures on the Singapore Exchange fell 52 points, at 5427.
The global risk aversion towards equities is expected to continue on back of Japan's nuclear crisis. Operators in Japan continued to douse the reactors from overheating by throwing water from military helicopters, but United States warned of a potential radiation threat.
Nikkei 225 plummeted 4% in the morning session after Yen climbed to record high against the US Dollar since the second World War on back of currency repatriation. The Nikkei recovered partially after the Yen eased, was up 2.1% at 8,904. Hong Kong's Hang Seng swooned 2% after investors dumped shares across the board. China's Shanghai Composite was down 0.4%, Straits Times declined 1%, Seoul Composite and Taiwan Weighted was off 0.8% each.
Back in Indian markets are expected to gyrate due to high volatility. The Nifty VIX (Volatility Index) closed at the 25 level, up 6.5% yesterday. According to the Technical charts Nifty is expected to remain directionless. Edelweiss in the morning note said, "Nifty is expected to stay choppy within the trading range of 5400-5600. A slew of moving averages around 5600 will restrict gains. Whereas multiple swing supports around 5400 will keep the downside protected."
Mid-term monetary policy review is expected at noon today. Economists expect marginal 25 basis point rate hike as inflation continues to remain high. Rate sensitive sectors will be closely watched.
