Local stocks are likely to open lower on negative global cues. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 77 points at the opening bell.
Overseas, Asian stocks are trading lower as spiking coronavirus cases and prospects of new lockdowns erased earlier confidence about a global economic recovery.
In US, the S&P 500 and the Dow reversed earlier gains to snap a three-day winning streak as news of spiking pandemic data and the prospect of a new round of economic lockdowns dampened investor optimism over signs of economic recovery. Tech shares led the Nasdaq to a modest gain.
U.S. Federal Reserve Chair Jerome Powell wrapped up two days of congressional testimony, during which he pledged the central bank will use its full range of tools to help that recovery along. But Powell added, It would be a concern if Congress were to pull back on the support that it's providing, too quickly.
Organization of the Petroleum Exporting Countries (OPEC) on Wednesday forecast a gradual recovery in oil demand that has been hammered by the coronavirus crisis and said record supply cuts by the group and other producers were already helping rebalance the market.
In a monthly report, the OPEC said world oil demand would decline by 6.4 million barrels per day (bpd) in the second half of 2020, a less severe drop than the 11.9 million bpd fall in the first six months. A gradual recovery (is) projected until the end of 2020, OPEC said in the report.
Back home, key domestic benchmarks ended the volatile session with modest losses on Wednesday. Geopolitical tension between India and China resulted in market weakness. Investors were also worried about the rising number of coronavirus cases and deaths in India. The barometer S&P BSE Sensex declined 97.30 points or 0.29% at 33,507.92. The Nifty 50 index fell 32.85 points or 0.33% at 9,881.15.
Foreign portfolio investors (FPIs) sold shares worth Rs 486.62 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 168.05 crore in the Indian equity market on 17 June, provisional data showed.
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