(20-Jul-2021)Indices may open slightly lower

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 12 points at the opening bell.

Global markets:

Overseas, Asian stocks are trading lower on Tuesday following an overnight tumble for stocks on Wall Street and concerns about the spread of the delta coronavirus variant. Markets in Indonesia, Malaysia and Singapore are closed on Tuesday for holidays.

On Tuesday, China kept unchanged its benchmark lending rate for corporate and household loans — the one-year Loan Prime Rate (LPR) held steady at 3.85% while the five-year LPR was also left at 4.65%.

Geopolitical jitters also resurfaced on Monday after the U.S., the U.K. and their allies said the Chinese government has been the mastermind behind a series of malicious ransomware, data theft and cyber-espionage attacks against public and private entities -- including the sprawling Microsoft Exchange hack earlier this year.

U.S. stocks dropped sharply on Monday on concern a rebound in Covid cases would slow global economic growth. Covid cases have rebounded in the U.S. this month, with the delta variant spreading among the unvaccinated. Cases were already flaring up around the world because of the delta variant.

Domestic markets:

Back home, key equity indices ended with sharp losses on Monday, tracking weak global cues. The S&P BSE Sensex, dropped 586.66 points or 1.10% at 52,553.40. The Nifty 50 index slipped 171 points or 1.07% at 15,752.40.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,198.71 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,047.66 crore in the Indian equity market on 19 July, provisional data showed.