Market May Open In Negative

Indian equities market snapped two-day losing streak on Wednesday as drugmakers and software exporters gained on optimism that a weak rupee will boost the value of their repatriated profits. The Sensex jumped 100 points to close at 27,932 and the Nifty advanced 29 points to end at 8,495. Earlier in the day, the Sensex and Nifty opened on a weak note owing to weakness in Chinese stock markets. However, due to recovery showcased by the Chinese stock markets, Indian benchmark indices also recovered from the intraday low levels. However, the broader markets underperformed benchmarks. The BSE Midcap gained 0.6% and Smallcap rose 0.24%.

Finally, RBI has opened up the country's banking sector by allowing business houses like Reliance Industries and Aditya Birla group to start payments banks -- an entity which will mainly involved in remittance services, will be allowed to accept deposits up to Rs 1 lakh but cannot lend and will only have to deploy funds in government paper and bank deposits. The other entities which have been given 'in-principle' approval are Vodafone, Airtel Department of Posts, Cholamandalam Distribution Services, Tech Mahindra, NSDL, Fino PayTech, Sun Pharma's Dilip Shantilal Shanghvi and PayTM's Vijay Shekhar Sharma. Payment banks allow mobile firms, supermarket chains, and others to cater to individuals and small businesses. They will be allowed to issue ATM/debit cards as also other prepaid payment instruments, but not the credit cards. Payments Banks will initially be restricted to holding a maximum balance of Rs 1 lakh per individual customer.

U.S. stock market closed lower Wednesday after minutes from the Federal Reserve's last policy meeting appeared to cast doubt over the possibility of a September interest rate rise. The Dow Jones industrial average ended down 162 points, or 0.9%, to close at 17,349 and the S&P 500 index dropped 17 points, or 0.8%, to 2080. The Nasdaq composite index fell 40 points, or 0.8%, to 5019.+

Oil prices fell to a fresh six-year low after data showed a surprise increase in U.S. stockpiles, adding to the glut of crude around the globe. Worries about future demand as the Chinese economy loses steam have also weighed on commodity prices. WTI crude price fell 4.3% to settle at USD 40.80 a barrel, while Brent crude shed 3.4% at USD 47.16, the lowest since mid-January. Copper also touched a fresh six-year low of USD 4,976 a tonne in London and finished 1% softer at USD 4,985, although most other base metals steadied.

European markets ended sharply lower on Wednesday as investors awaited the minutes of the U.S. Federal Reserve's meeting last month and oil prices tumbled after U.S. EIA reported an unexpected rise in crude stockpiles. The Stoxx Europe 600 closed 1.8% lower, led by a 2.1% fall in Germany’s DAX, which is packed with exporters highly sensitive to Chinese demand. The CAC 40 in Paris shed 1.75% at 4,884.10 compared with Tuesday’s close. London’s benchmark FTSE 100 index finished the day down 1.88% at 6,403.45 points.

Asian stocks fell for a fifth day after Federal Reserve minutes showed U.S. officials sought more progress on inflation and investors watched China as concerns heighted over the nation’s slowdown. Japan’s NIKKEI 225 index slid 0.6%. South Korea’s Kospi index fell 0.90%. Australia’s S&P/ASX 200 Index dropped 1.4%. China's Shanghai Composite index opened down 1.14%, a day after the benchmark index staged a U-turn in the final hour of trading on Wednesday, reversing losses as much as 5% to close up 1.2%.

Asian stocks fell a fourth day as a deepening commodities selloff raised concern growth may be slowing in China. A SGX CNX Nifty Index future for August delivery was down 52 points at 8,453. Indian markets may open in negative.