Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 45 points at the opening bell.
Overseas, Asian stocks are trading lower as the International Monetary Fund said the global economy is set to see a more significant contraction than it previously forecast.
Japan's exports plunged 28.3% year-on-year in May, according to provisional trade statistics released Wednesday by the country's Ministry of Finance.
IMF Chief Economist Gita Gopinath said in a Tuesday blog post that the forthcoming June World Economic Outlook Update is expected to show negative growth rates even worse than previously estimated. The fund also said the current crisis, which it dubbed the Great Lockdown, is unlike anything the world has seen before.
Investors continue to watch for developments on the geopolitical front regionally, as tensions escalate along the Korean peninsula after North Korea reportedly destroyed a liaison office with the South.
In US, Wall Street advanced on Tuesday as the prospect of additional stimulus and a record jump in retail sales suggested the U.S. economy could bounce back sooner than expected.
A full US economic recovery will not occur until the American people are sure that the novel coronavirus epidemic has been brought under control, Federal Reserve Chair Jerome Powell said on Tuesday, as he began the first of two days of hearings before US lawmakers. The longer the downturn lasts, the greater the potential for longer-term damage from permanent job loss and business closures, Powell added.
In economic data, U.S. retail sales jumped by 17.7% in May, the government said Tuesday. U.S. industrial production for May rose by 1.4%, as many factories resumed operations after shutdowns spurred by the coronavirus crisis, the Federal Reserve said Tuesday.
Back home, domestic shares advanced on Tuesday amid high volatility as strong global cues boosted sentiment while India-China faceoff in Ladakh capped gains. The barometer S&P BSE Sensex gained 376.42 points or 1.13% at 33,605.22. The Nifty 50 index rose 100.30 points or 1.02% at 9,914.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,478.52 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,161.51 crore in the Indian equity market on 16 June, provisional data showed.
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