The Nifty futures were trading at 9,278, lower by 200 points, on Singapore Exchange around 7:30 AM.
The benchmark indices are likely to start the month of May on a negative note due to weak cues from the global markets amid fears of a renewed US-China trade war. President Donald Trump revived a threat of new tariffs against China in response to the COVID-19 pandemic, which has brought global economies to a grinding halt. Trends on Singapore Exchange (SGX) Nifty futures indicate a negative opening for the index back home, with a drop of 590.5 points ahead of the opening of Indian markets. At 8:16 am, the SGX Nifty futures traded 446.50 points - or 4.55 per cent - lower at 9,368.50, while the Asian markets fell up to 3 per cent in early trades.
Asian markets opened lower on Monday morning, with major markets regionally closed for holidays. Hang Seng index dropped 3.43 per cent in early trade. South Korea's Kospi fell 1.87 per cent, while the MSCI Asia ex-Japan index traded 2.2 per cent lower.
The Dow Jones Industrial Average fell 2.5 per cent, the S&P 500 lost 2.8 per cent and Nasdaq Composite dropped 3.2 per cent on Friday as President Trump upped the ante against China in continuing war of words between the world's largest and second largest economy.
Meanwhile, oil prices fell in early trade on Monday, paring last week's gains, on worries the global oil glut may persist as US-China trade tension could hold back an economic recovery even as coronavirus pandemic lockdowns start to ease.
US West Texas Intermediate (WTI) crude futures fell as low as $18.32 a barrel and were down $1.46, or 7.6 per cent at $18.27 at 0008 GMT. Brent crude futures were down 90 cents, or 3.4 per cent at $25.54, after touching a low of $25.53.
On Friday, the government extended the coronavirus-induced lockdown by a further two weeks, dashing hopes of resumption in economic and business activities.
On the stock-specific front, Reliance Industries shares will be in the limelight after the conglomerate on late Thursday, reported a 38.73 per cent year-on-year (YoY) drop in consolidated profit for March quarter and announced pay cuts in its hydrocarbon business. Auto firms may also be on the radar after auto majors reported zero sales for April amid the ongoing lockdown.
The BSE Sensex rose 7.6 per cent in the truncated bygone week to end at 33,717, up 997 points, while Nifty settled 306 points higher at 9,859, to mark the best in four weeks. The markets were shut on Friday on account of Maharashtra Day.
