A weak opening on the cards for Sensex, Nifty

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Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slide 105 points at the opening bell. Overseas, Asian stocks are trading mostly lower on Tuesday as investors watched for market reaction to U.S. President Joe Biden picking Jerome Powell for a second term as Federal Reserve chair. Markets in Japan are closed on Tuesday for a holiday.

The S&P 500 ended lower and the Nasdaq tumbled deep into negative territory on Monday after both earlier hit record highs following the announcement of a second term for Federal Reserve Chair Jerome Powell. The Dow Jones Industrial Average ended slightly higher.

Biden had been under pressure to name a more progressive Democrat, rather than keep Republican Powell in the role. Powell has guided the U.S. central bank and the country’s economy through the pandemic recession, unleashing unprecedented monetary stimulus to keep financial markets afloat. His renomination now heads to the Senate for confirmation.

Domestic markets

Back home, the benchmark indices ended with sharp losses on Monday. The barometer index, the S&P BSE Sensex, skid 1,170.12 points or 1.96% at 58,465.89. The Nifty 50 index lost 348.25 points or 1.96% at 17,416.55.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,438.76 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,051.18 crore in the Indian equity market on 22 November, provisional data showed.