Markets may tumble on weak global cues

The Indian equity benchmarks extend its northward journey for fourth consecutive session on Monday. The market sentiment was lifted by rally in IT bellwether Infosys, while easing geopolitical tensions between Indian and China further fueled positivity in the market. Nifty climbed 56 points to close above the psychological mark of 9,900 and Sensex rose 155 points to shut at 31,751. 

European indices ended the first trading session of the new trading week with marginal losses. The markets were under pressure to a great extent because of the surge in the value of the Euro which marked over a 2-year high against the U.S dollar. The DAX of Germany lost 0.37 per cent and the CAC 40 of France edged down 0.48 per cent. The FTSE 100 of the U.K. was closed on account of the holiday. 

U.S. stocks displayed a lacklustre performance on Monday with the S&P 500 and Nasdaq ended with nominal gains and the Dow slipped in the negative terrain.  Major sectors showed only modest moves, whereas considerable weakness was visible among energy stocks. The Dow Jones Industrial Average slid 5 points to close at 21,808. The Nasdaq Composite Index surged 17 points to finish at 6,383 and the S&P scaled up 1 point to finish at 2,444. 

Asian indices were trading in negative terrain in early trade on Tuesday as sentiment remained fragile after reports that North Korea fired a ballistic missile that flew over Japan.  Japan’s Nikkei 225 has slipped 115 points. Hong Kong’s Hang Seng has shed 62 points and China’s Shanghai Composite is trading flat.  

The domestic indices are likely to open lower tracking negative sentiments prevailing in Asian markets and on reports of North Korea fired a ballistic missile that flew over Japan reigniting geopolitical tensions. The SGX Nifty which was trading at 9,869 down by 44 points, indicating a gap down opening  for the day.