The markets are likely to open lower, post the gains witnessed in the previous trading session, going by the trends on SGX Nifty and the weakness in Asia. Trends on SGX Nifty indicate a negative opening for the index back home; The Nifty futures were trading at 8,526 on the Singaporean Exchange around 07:30 hours IST.
Asian shares faced another leg lower on Wednesday as the coronavirus sharply slows global growth, leading a gauge of world stocks to post its biggest quarterly decline in more than a decade and oil prices to trade near lows last seen in 2002. FTSE China A50 futures in Singapore were down 0.85 per cent and Japan’s Nikkei fell 1.86 per cent in early trade.
Wall Street tumbled on Tuesday, with the Dow registering its biggest quarterly decline since 1987 and the S&P 500 suffering its deepest quarterly drop since the financial crisis on growing evidence of massive economic damage from the coronavirus pandemic. The Dow Jones fell 410.32 points, or 1.84 per cent, to 21,917.16, the S&P 500 lost 42.06 points, or 1.60 per cent, to 2,584.59 and the Nasdaq Composite dropped 74.05 points, or 0.95 per cent, to 7,700.10.
Meanwhile, late on Tuesday, the government slashed interest rates on small savings schemes by 70 to 140 basis points (bps) for the April-June quarter of the financial year 2020-21. The interest rates on public provident funds have been brought down by 80 bps to 7.1 per cent and for Kisan Vikas Patra have slashed by 70 bps to 6.9 per cent.
Domestic stock markets ended nearly 4 per cent higher on Tuesday; the Sensex ended 1,028.17 points – or 3.62 per cent – higher at 29,468.49, and the Nifty settled at 8,597.75, up 316.65 points (3.82 per cent) from the previous close.