Market Likely Remain Under Pressure

Indian equities market Snaps 3-Day Losing Streak with benchmark Sensex managing to sneak past the 26,000-mark at close on short-covering in rate-sensitive stocks. Yesterday, the Chinese monetary authorities cut rates to rejuvenate its economy and markets. Further improving the sentiment in domestic markets, a glimmer of hope has emerged on the Goods and Services Tax Bill. The government is consulting with the Opposition to discuss extra sittings of Parliament to pass the GST Bill. The BSE Sensex and NSE Nifty closed 290.82 points and 71.70 points higher at 26,032.38 and 7,880.70 respectively on Tuesday. The Sensex and Nifty closed 290.82 points and 71.70 points higher at 26,032.38 and 7,880.70 respectively on Tuesday. Sensex plummeted around 2,190 points in the past three trading sessions till August 24. Among the broader indices BSE 100 was up by 1.28%, BSE 200 gained 1.32%. Mid-cap and small-cap stocks were up by 1.99% and 1.01% respectively.

U.S. stocks closed lower, after a failed attempt to rally from the Dow's worst 3-day point decline in history, as fears of a China-led global slowdown intensify. The S&P 500 closed about 1.3% lower after rallying nearly 3% earlier. The Dow Jones Industrial Average high was up more than 400 points, ended with a loss of 204.91 points, or 1.3%, at 15,666.44. The Nasdaq Composite ended the day down 19.76 points, or 0.4% at 4,506.49.

European markets finished sharply higher on Tuesday, after posting staggering losses in the previous session, which has already being dubbed "Black Monday. The Stoxx Europe 600 index closed 4.2% higher, its biggest one-day gain since September 2011. Germany’s DAX rose 5.0%, France’s CAC 40 climbed 4.1% and the U.K.’s FTSE 100 closed 3.1% higher.

Asian stocks rose, with Japanese shares rebounding from the biggest two-day plunge since 2011, as investors weighed the impact of China’s interest-rate cut. Japan’s NIKKEI 225 index rose 1.5%. Australia’s S&P/ASX 200 Index declined 0.82% and South Korea’s Kospi index retreated 0.81%. New Zealand’s NZX 50 Index fell 0.49%. The benchmark Shanghai index swung halved losses nearly an hour into trade, down 1.05% at 3,935 at a fresh 8-month low.

A SGX CNX Nifty Index future for August delivery was up 99 points at 7,786. Indian market is likely remaining under pressure. Next two days, the market may remain volatile due to F&O expiry on Thursday.