Market Likely To Open In Red

Indian equities market fell for third day in a row tracking weakness in Rupee after China devalued its currency against the Dollar and logjam in Parliament about the key goods and service tax (GST) bill. The BSE Sensex and NSE Nifty closed 235.63 points and 63.25 points lower at 27,866.09 and 8,462.35, respectively, led by declines in banking stocks after SBI’s quarterly results disappointed investors.

Stocks closed sharply lower Tuesday after a surprise move by China to reduce the value of its currency in an effort to provide a boost to its lagging economy by making its goods more affordable to foreign buyers. Oil also took a hit, falling to a 6-year low. The Dow Jones Industrial Average tumbled 242 points, or 1.4%, at 17,373, while the S&P 500 lost 25 points, about 1.2%, at 2,079, and the Nasdaq Composite Index gave up 72 points, or 1.4%, at 5,030.

Oil prices also plunged to 6-year lows as China's move raised fears about demand. WTI crude fell as low as USD 42.69 a barrel. OPEC added to oil woes when it released a report showing the oil cartel's production increased in July. Brent crude oil price ticked down 2.82% to trade at USD 49.58 a barrel.

European stocks fell Tuesday due to China’s unexpected devaluation of the yuan, but Greek shares rose after the cash-strapped country moved closer to receiving fresh financial aid. The German DAX declined 2.68% and the French CAC 40 decreased 1.86%, while the FTSE 100 index of the U.K. hit 1.06%.

Asian stocks and emerging currencies tumbled along with commodities prices on Wednesday after China allowed the yuan to fall sharply for a second straight day, forcing investors to seek refuge in safe-haven government debt. Japan’s NIKKEI 225 index lost 1.11%. South Korea’s Kospi index lost 1.34%. Australia’s S&P/ASX 200 Index dropped 0.55%, while New Zealand’s NZX 50 Index slid 0.7%. Hong Kong’s Hang Seng Index lost 1.32% and China's Shanghai Composite index down 0.8% to 3,895 points.

A SGX CNX Nifty Index future for August delivery was down 60 points at 8,427. Indian markets likely to open in red. Traders will be eyeing the crucial macro economic data of IIP of May and CPI inflation data of June, slated to be announced on today. Abbott India, Aurobindo Pharma, Balmer Lawrie, Coal India, Dhanlaxmi Bank, Dhanuka Agritech, Goodyear India, IDBI Bank, Indo Borax, India Cements, JBM Auto, Jindalstel, Jubilant Industries, Maxwell Industries, Max India, Merck, Moil, Natco Pharma, Time Technoplast, Timken, TVS Srichakra, Titagarh Wagons and UFO Moviez would be reporting first quarter earnings today.