Nifty Seen Opening Below 16,500 On Weak Global Cues

The Nifty 50 index is set to open sharply lower as indicated by the Nifty Futures on Singapore Exchange amid weak global cues. The Nifty Futures on Singapore Exchange also known as the SGX Nifty Futures fell 210 points to 16,498. Meanwhile, stocks fell globally as soaring oil prices raised more concerns about how Russia’s escalating war on Ukraine may impact the global economy. Nervous investors again poured money into ultra-safe U.S. government bonds.

Japan's Nikkei dropped nearly 2 per cent, Hong Kong's Hang Seng declined 1.1 per cent and Taiwan Weighted fell 0.34 per cent.

Overnight, the S&P 500 index fell 1.5 per cent. The Dow Jones Industrial Average fell 1.8 per cent and the Nasdaq composite slid 1.6 per cent. The declines add to the market’s losses after a two-month skid to start the year, news agency AP reported.

The crisis in Ukraine prompted an extraordinary meeting of the International Energy Agency’s board, which resulted in all 31 member countries agreeing to release 60 million barrels of oil from their strategic reserves in an attempt to bring down prices.

Russia’s invasion of Ukraine has also put more pressure on agricultural commodity prices, which were already getting pushed higher with rising inflation. Wheat and corn prices rose more than 5 per cent per bushel and are already up more than 20 per cent so far this year. Ukraine is a key exporter of both crops.

Back home, foreign institutional investors sold shares worth Rs 3,948 crore on Monday while domestic institutional investors bought shares worth Rs 4,143 crore.

Vedant Fashions promoter of ethnic wear maker Manyavar will be in focus after its net profit advanced 24 per cent to Rs 128 crore in December quarter.