Excerpts from Power Breakfast on CNBC-TV18 Watch the full show »
The Nifty is likely to open in red with indicator SGX Nifty trading at 8457.50, down 24.50 percent.
On Monday, the 30-share BSE Sensex shed 338.70 points to 28119.40 while the 50-share NSE Nifty closed way below the 8500-mark, down 100.05 points. The broader markets dropped too; the BSE Midcap and Smallcap indices slipped 1.2 percent and 0.9 percent, respectively.
Asian equity markets joined Wall Street’s slump on Tuesday after oil markets resumed their downward spiral, pushing Shanghai and Japanese shares off multi-year highs.
US crude extended losses in the Asian trading session, hitting a new five-year low of USD 62.25 a barrel before paring losses. Overnight, prices tumbled 4 percent on the back of bearish forecasts, which saw the Dow post its biggest decline since October.
Calls for Chinese stimulus were in focus following Monday’s November export growth reading. Meanwhile, China’s Central Economic Work Conference kicks off later today, an annual meeting of policymakers that sets economic priorities for the coming year.
Hong Kong’s Hang Seng shed 0.80 percent or 191.29 points at 23,856.38. Japan’s Nikkei fell 0.35 percent or 63.34 points at 17,872.30.
South Korea’s Seoul Composite slipped 0.31 percent or 6.14 points at 1,972.81. Taiwan’s Taiwan Weighted was down 0.47 percent or 43.08 points at 9,144.21.
China’s Shanghai Composite declined 0.36 percent or 11 points at 3,009.26. Singapore’s Straits Times added 0.75 percent or 24.88 points at 3,322.72.
US stocks fell sharply with benchmark indices retreating from records and the energy sector slammed as the price of Nymex crude fell below USD 63 a barrel for the first time since July 2009.
In Europe, shares closed lower with construction stocks continuing to weigh heavily after Wall Street opened down. Meanwhile, shares of energy companies underperformed, as oil prices continued sliding. The commodity has lost around a third of its value since July. From precious metals space, gold prices rise over 1 percent to USD 1200 an ounce as dollar slips from a more than five-year high.
In the currency space, the yen held onto sizeable gains having staged a broad short-covering rally as a big drop in oil prices hit global risk appetite.