Nifty Likely To Open In Positive

Indian equities market crash nearly 6% on Monday which is most in seven years in percentage term. The rupee also hit a fresh two-year low 66.74 per dollar on Monday as India felt the tremors of the free-fall in global markets sparked by concerns of a deepening China slowdown. The Sensex crashed 1,624.51 points or 5.94% to 25741.56. The Nifty managed to hold 7800 level after hitting day's low of 7769.40. The index fell 490.95 points or 5.92% to 7809. The broader markets, too, saw red tick as the BSE Midcap and Smallcap indices declined 8.8% and 7.7%, respectively.

U.S. stock indexes plunged almost 4% on Monday in a fifth straight day of brutal declines for the market sparked by China growth fears. The Dow Jones Industrial Average ended down 588 points, or 3.6%, at 15,871.28, after staging a stunning 1,000-point drop at the open of Monday's trading session. The Nasdaq Composite Index tumbled 179.79 points, or 3.8%, to 4,526.25 and the S&P 500 fell 77.68 points, or 3.94%, to 1,893.21.

The plunge in oil prices accelerated Monday in line with the selloff in global financial markets, with WTI settling under USD 39 a barrel as investors remain shaken about prospects for global economic growth. WTI crude for delivery in October fell USD 2.21, or 5.5%, to settle at USD 38.24 a barrel on the New York Mercantile Exchange. October Brent crude sank USD 2.77, or 6.1%, to USD 42.69 a barrel, dropping below USD 43 for the first time since March 2009.

European markets closed sharply lower on Monday, despite paring some losses, amid a staggering selloff in stock markets around the world. The pan-European STOXX 600 index pared some losses to finish down 5.3%. Germany’s DAX Index sank 4.7%, down 22% from its peak. The French CAC slipped around 5.6% and London's FTSE 100 index ended the day off by around 5.0%.

Chinese stocks looked vulnerable to another sell-off on Tuesday, with investors gripped by fears of a hard landing for the Chinese economy, the world's most important growth engine. Japan’s NIKKEI 225 index rose 1.1%, reversing a 4.7% slide earlier on Tuesday. South Korea’s Kospi index gained 1.83% and New Zealand’s NZX 50 Index slipped 0.18%. Australia’s S&P/ASX 200 Index jumped 2.81%, the most since February. Hong Kong’s Hang Seng Index climbed 1.75%. China's Shanghai Composite index halved losses nearly an hour into trade, down 4.34% at 3,069, after losing more than 6% at the start of trade to hit its lowest level since December 2014.

A SGX CNX Nifty Index future for August delivery was up 132 points at 7,928. Nifty is likely to open in positive on account sign of recovery in the Asian stock market. During the week, the market may remain volatile due to F&O expiry this week.