Domestic stock markets are likely to start Thursday's session on a negative note to continue their downward movement after a day's breather, tracking weakness in global peers. The Singapore Exchange (SGX) Nifty futures - an early indicator of the National Stock Exchange (NSE) Nifty 50 index - shed as many as 148.2 points to hit 9,132.50 on the downside ahead of the opening of Indian markets. At 7:54 am, the SGX Nifty futures were down 129.20 points - or 1.39 per cent - at 9,151.50.
Asian stocks were set to come under pressure as downbeat economic data pushed investors to safe havens and growing worries about falling demand sent oil prices lower. E-mini futures for the S&P 500 fell 0.28 per cent. Japan's Nikkei 225 futures fell 0.23 per cent while Hong Kong's Hang Seng index futures lost 0.76 per cent.
Overnight, the S&P 500 and the Dow fell on Wednesday as declines in financials and defensive groups countered gains in tech shares and as data showed U.S. private employers laid off 20 million workers in April, underscoring the economic fallout of the coronavirus outbreak. The Dow Jones Industrial Average fell 0.91 per cent and S&P 500 lost 0.70 per cent; Nasdaq Composite, however, added 0.51 per cent.
Meanwhile, oil prices rose on Thursday after U.S. inventories swelled less than expected, but market watchers predicted further gains could be capped by the ongoing glut in crude supplies as the coronavirus pandemic crushes fuel demand. Brent crude was up by 12 cents, or 0.4 per cent, to $29.84 a barrel 0044 GMT, after falling earlier in the Asian session and dropping 4 per cent on Wednesday.
Analysts awaited more large cap companies to report their financial results for the quarter ended March 31 for near-term direction.
Private sector lender ICICI Bank is due to report its March quarter earnings on Saturday.
On Wednesday, the domestic stock markets had ended a volatile session lower with the S&P BSE Sensex index closing 232.24 points (0.74 per cent) lower at 31,685.75 and the broader NSE Nifty 50 benchmark settling at 9,270.90, down 65.30 points or 0.71 per cent compared to its previous close.
