Sensex, Nifty Likely To Open Lower Today; GDP Data In Focus



Sensex, Nifty Likely To Open Lower Today; GDP Data In Focus

At 8:44 am, the SGX Nifty futures were down 2.01% at 11,376.00

Domestic stock markets are likely to start Friday’s session on a lower note tracking weakness in Asian peers on concerns about the coronavirus outbreak, ahead of the release of official data on gross domestic product (GDP) for the October-December period. The Singapore Exchange (SGX) Nifty futures – an early indicator of the National Stock Exchange (NSE) Nifty index – shed as much as 233 points – or 2.01 per cent – to hit 11,376.00 on the downside ahead of the opening of Indian markets. At 8:54 am, the SGX Nifty futures were down 224 points – or 1.93 per cent – at 11,385.

Official data on gross domestic product (GDP) for the October-December period will be released at 5:30 pm today. According to a poll conducted by news agency Reuters, the annual gross domestic product growth likely rose to 4.7 per cent in October-December from 4.5 per cent in the previous quarter.

Today’s data is the first since the Union Budget, which some say appears to support the economy in the long term but may not be enough to give it an immediate boost.

Hopes the coronavirus would be contained to China vanished on Friday as infections spread rapidly around the world, countries started stockpiling medical equipment and investors took flight in expectation of a global recession.

Equities in global markets were headed for the worst week since the depths of the 2008 financial crisis as investors ditched risky assets on fears the coronavirus would become a pandemic and derail economic growth.

Asian stocks tracked another overnight plunge in Wall Street’s benchmarks on Friday with the markets in China, Japan and South Korea all posting heavy losses.

MSCI’s all-country world index fell 0.3 per cent after a 3.3 per cent drop on Thursday, having lost 9.2 per cent so far this week and on course for its biggest weekly decline since a 9.8 per cent plunge in November 2008.

In Asia, MSCI’s regional index excluding Japan shed 1.4 per cent. Japan’s Nikkei plunged 3.3 per cent on rising fears the Olympics planned in July-August may be called off due to the coronavirus.

On Thursday, the S&P BSE Sensex index had ended 143.30 points – or 0.36 per cent – lower at 39,745.66 and the broader NSE Nifty benchmark settled at 11,633.30, down 45.20 points – or 0.39 per cent – from the previous close, extending losses for the fifth session in a row.


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