Indian shares are set for a weak start on Tuesday, tracking sell off on Wall Street, on the back of growing concerns over global economy slowdown. Investors are now focused on the Federal Reserve policy meeting, where the Fed is widely expected to raise interest rates on Wednesday, which would be its fourth hike this year.
Indian shares likely will start on a tepid note tracking weak global cues. The Singapore-traded SGX Nifty Futures indicate a lower opening on Dalal Street today. The BSE Sensex closed at 36,270, rising 0.85 percent, or 307 points, while the NSE Nifty ended at 10,888, posting a gain of 0.77 percent, or 83 points.
Here is what you need to know before the market opens:
Asia: Markets stumbled amid heightened concerns about a slowing global economy sent Wall Street stocks skidding to their lowest levels in more than a year. MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.25 percent in early trade, while Japan's Nikkei tumbled 1.5 percent.
Wall Street: The S&P 500 lost 2.08 percent to hit its lowest since October 2017 as it breached lows reached during a sell-off in February, having wiped out about $3.4 trillion of market value since late September. The Nasdaq Composite dropped 2.27 percent, with Amazon, one of the best performing shares this year, dropping 4.5 percent.
Fed on Wednesday: Market expectations are for a relatively dovish hike from the Fed (and for it to temporarily pause its rate hike cycle in the beginning of 2019). Trump repeated his criticism of the Fed via Twitter: "It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!
Dollar: The euro traded flat at $1.1348, after having gained 0.40 percent on Monday. The dollar fetched 112.83 yen, little changed in Asia after Monday's fall of 0.49 percent while the offshore Chinese yuan was little moved at 6.8961 to the dollar.
Oil: US crude fell to as low as $49.01 per barrel on Monday, its lowest level since September last year and last stood at $49.33, down 1.1 percent on the day.
Market at close on Monday: The BSE Sensex closed at 36,270, rising 0.85 percent, or 307 points, while the NSE Nifty ended at 10,888, posting a gain of 0.77 percent, or 83 points.
Rupee close: The Indian rupee on Monday recovered by 34 paise to close at 71.56 against the US dollar. The rupee opened higher at 71.84 a dollar after Friday's close of 71.90 against the greenback.
FII & DII data: Foreign Institutional Investors (FIIs) sold shares worth Rs 60.95 crore and Domestic Institutional Investors sold Rs 76.84 crore worth of shares in the Indian equity market on December 17, as per provisional data available on the NSE.
Farm loan waiver: Madhya Pradesh chief minister Kamal Nath has waived off farm loans up to Rs 2 lakh. Congress President Rahul Gandhi had announced that the party would start the process of writing off farmer loans within 10 days of government formation in the state.
LPG scheme: The government on Monday extended Ujjwala Yojana of providing free cooking gas (LPG) connections to all poor households. The scheme, launched in 2016, originally targeted giving LPG connections to women members of below the poverty line (BPL) households.