Market May Remain Under Pressure

Indian equities market consolidation on Tuesday, as equity benchmarks started the session on a positive note but wiped out those gains in afternoon trade to close marginally lower, weighed down by crash in Chinese shares more than 6% and on worries at home that the monsoon may be deficient. The key benchmark indices Sensex and Nifty closed 46.73 points and 12.45 points lower 27,831.51 and 8,464.85. However, the broader markets outperformed benchmarks, supported by retail and HNIs. The BSE Midcap gained 0.5% and Smallcap rose 0.9%.

U.S. stocks closed lower after a choppy session Tuesday as concerns over growth in Chinese economy pressured Wall Street even as domestic data on the U.S. housing market supported a robust recovery. The Dow Jones industrial average ended down about 34 points, or 0.2%, after being down as much as 58 points earlier. The Standard & Poor's 500-stock index dropped 0.3% and the Nasdaq composite was 0.6% lower.

Homebuilder stocks were a bright spot on markets, following the latest sign of a recovery in the U.S. housing market. U.S. housing starts data for July came in at 1.206 million, above what economists expected and near an eight-year high. June's starts were also revised higher to a 1.20 million-unit rate from the previously reported 1.17 million-unit pace.

Major European markets closed with slight losses after another plunge on China's main index, and on the eve of a German parliament vote on Greece's new bailout. France's CAC-40 slipped 0.3%, and Britain's FTSE 100 fell 0.4%. Germany's DAX lost 0.2%. But another key index, the Stoxx Europe 600 edged up 0.2% to end at 388.13 after switching between small gains and losses.

Asian stocks fell a fourth day as a deepening commodities selloff raised concern growth may be slowing in China, and as investors await clues from the Federal Reserve on the timing of a U.S. interest-rate increase. Japan’s NIKKEI 225 index fell 0.52%. South Korea’s Kospi index slide 1.27%. Australia’s S&P/ASX 200 Index gained 1.25% and New Zealand’s NZX 50 Index climbed 0.93%. China's Shanghai Composite index fell 2.4% to 3,656 points at the open.

A SGX CNX Nifty Index future for August delivery was down 13 points at 8,461. Indian markets may remain under pressure.