Market Updates: SGX Nifty Falls 200 pts; Indices Likely to Open Gap-Down on Weak Global Cues

Markets are likely to start Monday’s session lower amid weak global cues heightened by interest rate hike expectations and the growing geo-political tension around Russian and Ukraine.

At 8:10 am, the SGX Nifty Futures were 200 points down at 17,147, as against the Nifty’s spot close on the previous day.

Global Cues

US stocks dropped on Friday on rising worries over escalating Ukraine-Russia tensions and the prospect of a tightened interest rate hike timeline from the U.S. Federal Reserve in response to decades-high inflation. The Dow Jones Industrial Average ended down 503.53 points, or 1.43%, at 34,738.06; the S&P 500 lost 85.44 points, or 1.90%, at 4,418.64; and the Nasdaq Composite dropped 394.49 points, or 2.78%, to 13,791.15.

Asian shares slipped on Monday as warnings Russia could invade Ukraine at any time sent oil prices to seven-year peaks, boosted bonds and belted the euro. The United States on Sunday said Russia might create a surprise pretext for an attack, as it reaffirmed a pledge to defend “every inch” of NATO territory. The cautious mood saw MSCI’s broadest index of Asia-Pacific shares outside Japan drop 0.2%, while Japan’s Nikkei lost 2.1%.