Market may see volatile swings today as traders roll over positions in the F&O segment from the near month June series to July series. The June 2020 F&O contracts expire today, 25 June 2020.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 130 points at the opening bell.
The International Monetary Fund (IMF) on June 24 projected a sharp contraction of 4.5% for the Indian economy in 2020, a historic low, citing the unprecedented coronavirus pandemic that has nearly stalled all economic activities, but said the country is expected to bounce back in 2021 with a robust 6% growth rate.
The IMF projected the global growth at -4.9% in 2020, 1.9 percentage points below the April 2020 World Economic Outlook (WEO) forecast. Given the unprecedented nature of this crisis, as is the case for almost all countries, this projected contraction is a historic low, Gita Gopinath, IMF's Chief Economist, said as she released the World Economic Outlook Update.
Overseas, Asian stocks are trading lower following a tumble in Wall Street stocks and oil prices on Thursday after surging U.S. coronavirus cases and the International Monetary Fund's downgrade to global economic projections shook confidence in a recovery. Markets in Hong Kong and mainland China are closed for public holidays on Thursday.
In US, Wall Street's three major indexes on Wednesday suffered their biggest daily percentage drop in almost two weeks as a surge in U.S. coronavirus cases intensified fears of another round of government lockdowns and worsening economic damage.
Shares of U.S. airlines, resorts and cruise operators slumped as travel was hit hard by lockdowns. Royal Caribbean Cruises Ltd, Norwegian Cruise Line Holdings Ltd and Wynn Resorts all tumbled.
On Wednesday, three U.S. states reported record increases in new cases -- Florida, Oklahoma and South Carolina -- driving the negative sentiment.
The governors of New York, New Jersey and Connecticut, initially hard hit by the pandemic, ordered travelers from nine other states to quarantine for 14 days on arrival as COVID-19 showed signs of rising in other areas.
Back home, the Sensex and the Nifty corrected sharply on Wednesday, after rising almost 6% in the past four sessions. Banks and pharma shares tumbled due to profit booking. European stocks fell while US index futures corrected amid spike in COVID-19 cases worldwide. The barometer S&P BSE Sensex tumbled 561.45 points or 1.58% at 34,868.98. The Nifty 50 index slumped 165.70 points or 1.58% at 10,305.30.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,766.90 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,524.90 crore in the Indian equity market on 24 June, provisional data showed.
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