Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 46 points at the opening bell.
India's retail inflation for June worsened to 6.09% due to a spike in the prices of certain food items, government data on July 13 showed. The Consumer Price Index (CPI) data was last released in March when it was at 5.84%. The government had not released the CPI data for April and May, citing insufficient data collection following the outbreak of coronavirus.
Overseas, rating agency S&P Global has cut its emerging market growth forecasts, predicting a 4.7% slump on average this year due to the coronavirus and warned that all countries would be left with permanent scars too.
Asian stocks are trading lower on Tuesday, ahead of the release of China's trade data for June.
Singapore's economy contracted 12.6% in the second quarter as compared to a year ago, according to advance estimates by the Ministry of Trade and Industry released Tuesday.
World Health Organization Director-General Tedros Adhanom Ghebreyesus on Monday warned that “too many countries are headed in the wrong direction.” In several countries across the world, we are now seeing dangerous increases in Covid-19 cases, and hospital wards filling up again, Tedros said. It would appear that many countries are losing gains made as proven measures to reduce risk are not implemented or followed.
In US, stocks closed mostly lower Monday, with the Dow clinging to a modest gain, after technology stocks fell and rising coronavirus cases led California's governor to order businesses across the state to shutter once again.
Equity benchmarks started with sharp gains after the Food and Drug Administration granted “fast track” status to a pair of vaccine candidates produced by Pfizer and German biotech firm BioNTech SE.
California also took a U-turn on Monday afternoon, with Gov. Gavin Newsom ordering every county in the state to shutter bars, indoor dining, movie theaters and wineries, while the state grapples with soaring COVID-19 cases.
Investors also have been keeping an eye on threats of renewed U.S.-China tensions. President Donald Trump on Friday said there was no scope for a phase-two agreement on trade between the two countries, saying Washington's relationship with China had been “severely damaged” by the coronavirus pandemic, which the administration has sought to blame on Beijing. China's move to crack down on Hong Kong with the passage of strict new national security laws has also raised tensions.
Meanwhile, Dallas Fed President Robert Kaplan said U.S. economic growth is slowing after initial burst in May, while speaking at the National Press Club.
Back home, the key indices logged modest gains on Monday. The barometer S&P BSE Sensex rose 99.36 points or 0.27% at 36,693.69. The Nifty 50 index added 47.15 points or 0.44% at 10,815.20.
Foreign portfolio investors (FPIs) bought shares worth Rs 221.76 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,485.59 crore in the Indian equity market on 13 July, provisional data showed.