What changed your market while you were sleeping
A government plan to spend up to Rs 50,000 lakh crore to rev up the economy may sound promising, but signals that it may loosen fiscal deficit target for the same will not go down well with Dalal Street. Add to that the overnight depression in US markets because of a tech rout and jitters in Asian markets this morning over North Korea tensions, and we are definitely looking at more pain over here.
The following can give you fair idea on how the market is poised for the day.
Signal from Singapore
Nifty futures on the Singapore Stock Exchange traded with a 42 points cut at 9,841 early this morning, signalling more pain in the market during the day’s session.
Depression in Asian markets
Asian shares slumped on Tuesday while the dollar remained off recent highs against the yen against the backdrop of rising tensions on the Korean Peninsula, Reuters reported. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.2 per cent in early trade, following losses on Wall Street. Australian shares were up 0.1 per cent, while South Korean shares were down 0.3 per cent. Japan’s Nikkei sagged 0.2 per cent.
US markets slid overnight
Wall Street dipped on Monday, as a selloff in technology shares weighed heavily on the Nasdaq, while the most recent statement from North Korea’s to Washington added to a cautious tone. The Dow fell 53.84 points, or 0.24 per cent, to 22,295, the S&P500 lost 5.56 points, or 0.22 per cent, to 2,496 and the Nasdaq 56.33 points, or 0.88 per cent, to 6,370.
Rupee crashed to 6-month low
The rupee on Monday crashed to a six-month low at 65.12 to the dollar — a level last seen on March 24, and down 0.50 per cent from its Friday’s close of 64.80. The home currency weakened after local equity markets fell for the fifth consecutive session.
North Korea in war mode
North Korea’s foreign minister said on Monday that US President Donald Trump had declared war on North Korea and that Pyongyang reserves the right to take countermeasures, including shooting down US strategic bombers even if they are not in the country’s air space.
Modi’s $2.5 billion power push
Prime Minister Narendra Modi on Monday launched a $2.5 billion project to electrify all of the country’s households by the end of 2018. The PM also set up an economic advisory council as concerns grow about a slowdown in Asia’s third largest economy.
Signal of slippage on fiscal deficit
The government is planning measures to revive economic growth, Finance Minister Arun Jaitley said on Monday, Reuters reported. The government is considering a plan to loosen its fiscal deficit target to enable it to spend up to Rs 50,000 crore ($7.68 billion) more to halt an economic slowdown, Reuters quoted two government officials as saying.
Crude oil on a high
Oil markets took a breather on Tuesday after prices jumped more than 3 per cent to hit a more than two-year high on Monday, with Turkey threatening to cut crude flows from Iraq’s Kurdistan region to the outside world. London Brent crude for November delivery rose 8 cents to $59.10 a barrel. It had settled up 3.8 per cent on Monday, after earlier touching a 26-month high. US crude for November delivery was down 11 cents at $52.11, having settled up 3.1 per cent after marking a five-month high on Monday.