The BSE Sensex and NSE Nifty are likely to open in red on Monday tracking SGX Nifty and weak Asian markets.
At 8.29 am (IST), SGX Nifty was trading 2.10 per cent lower lower than its previous close.
Asian peers, Hang Seng, Nikkei and Shanghai were down 4.08 per cent, 3.21 per cent and 8.01 per cent at 21,495, 18,812 and 3,226.82, respectively.
Asian stocks dived to 3-year lows on Monday as a rout in Chinese equitiesgathered pace, hastening an exodus from riskier assets as fears of a China-led global economic slowdown roiled world markets.
Back home, domestic equities market plunged 0.88 per cent on Friday.
Vikas Singhania, executive director, Trade Smart Online, said, “This week, sentiments will be dominated by any further move by China to devalue its currency. Last week, most global equity markets and emerging market currencies witnessed selling pressure as investors fretted over slowdown in China’s economic growth. Any move by China to further devalue its Yuan will intensify investors concern. Foreign funds won’t like to wait until the depreciation is over. Apart from global factors, progress of monsoon, movement of rupee against the dollar and crude oil price movement will dictate trend on the bourses.”
Alex Mathews, head research, Geojit BNP Paribas Financial Services, said, “The news of government ‘favourably’ considering AP Shah panel recommendation on levy of MAT on FIIs can help the market on Monday.”