Domestic stock markets are likely to start Wednesday’s session on a negative note, extending losses to a fourth straight session, tracking weakness across Asian peers amid concerns about the coronavirus outbreak. The Singapore Exchange (SGX) Nifty futures – an early indicator of the National Stock Exchange (NSE) Nifty index – declined as much as 148 points to hit 11,670.00 on the downside ahead of the opening of Indian markets. At 8:28 am, the SGX Nifty futures were down 79.00 points – or 0.67 per cent – at 11,739.00.
Analysts awaited official macroeconomic data due by the end of the week for any signs of revival in economic growth. The government will release data on GDP or gross domestic product in the October-December period on Friday evening. (Here’s What To Expect From Official GDP Data)
Equities in other Asian markets fell on Wednesday as the United States’ warning to its citizens to prepare for the possibility of a coronavirus pandemic drove another Wall Street tumble and pushed yields on safe-haven Treasuries to record lows. The S&P 500 and the Dow Jones Industrial Average indices both shed more than 3 per cent overnight in their fourth straight session of losses.
MSCI’s broadest index of Asia-Pacific shares outside Japan declined 1.28 per cent whereas Japan was among the worst-performing markets in the region, with its benchmark Nikkei index sliding 1.1 per cent.
While the stock rout has been global, the recent pace of selling in Asia has not been as severe as it has on Wall Street, which has been hit hard by the escalation of virus cases outside of Asia.
The World Health Organization says the epidemic has peaked in China, but concern that its spread is accelerating in other countries is likely to keep investors on edge.
On Tuesday, the S&P BSE Sensex index had declined 82.03 points – or 0.20 per cent – to end at 40,281.20, and the broader NSE Nifty benchmark settled at 11,797.90, down 31.50 points – or 0.27 per cent – from its previous close.
That meant both indices declined for the third trading day in a row, a period during which the Sensex lost a total 1,041.8 points (2.52 per cent) and the Nifty shed 328 points (2.70 per cent).