Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 58 points at the opening bell. Overseas, Asian stocks traded lower on Tuesday as investors continue to monitor the situation surrounding embattled developer China Evergrande Group. Japanese stocks declined as they returned to trade following a Monday holiday. Markets in mainland China and South Korea are closed on Tuesday for a holiday.
Wall Street fell in a broad sell-off on Monday, as fear of contagion from the potential collapse of China’s Evergrande drove investors out of equities in a flight for safety. The US Federal Reserve is due to meet on Tuesday and Wednesday as investors look for cues on when it will begin pulling back on its bond purchases. Fed Chair Jerome Powell will hold a press conference Wednesday at the conclusion of the two-day meeting. Powell has said the so-called tapering could occur this year, but investors are waiting for more specifics, particularly after mixed economic data released since Powell’s last comments.
Back home, the domestic equity benchmarks ended near the day’s low amid a heavy sell-off on Monday. Weak global cues spoiled sentiment. The barometer index, the S&P BSE Sensex, declined 524.96 points or 0.89% to 58,490.93. The Nifty 50 index lost 188.25 points or 1.07% to 17,396.90. Foreign portfolio investors (FPIs) bought shares worth Rs 92.54 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,626.58 crore in the Indian equity market on 20 September, provisional data showed.
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