Market Likely To Open In Red On Weak Global Cues

Snapping the four-session long gaining spree, the domestic markets ended lower on Wednesday due to a decline in the banking shares after the Reserve Bank of India (RBI) in its fifth bi-monthly monetary policy on Tuesday maintained a status quo as regards key rates, with broader sentiment also hit by continued worries about a US rate hike. The Sensex ended down 51.56 points or 0.2% at 26117.85 and the Nifty slipepd 23.55 points or 0.3% at 7931.35. Meanwhile, the broader markets outperformed their larger peers with BSE Midcap and Smallcap indices ending between 0.1-0.2%.

U.S. stocks closed lower Wednesday, erasing all the of previous session’s gains as a sharp selloff in energy stocks as U.S. crude oil dropped below USD 40 a barrel. The Dow Jones Industrial Average fell 158.67 points, or 0.9%, to 17729.68. The S&P 500 declined 23.12 points, or 1.1%, to 2079.51. The Nasdaq Composite lost 33.08 points, or 0.6%, to 5123.22. On Friday, the November U.S. jobs report is forecast to show solid job creation and could bolster the case for raising rates.

Europe ended mixed after earlier gains. The broad Stoxx Europe 600 was flat, after rallying 0.5% earlier in the session. Germany's DAX was down 0.6% after being up 0.4%, the CAC 40 in Paris ended 0.2% lower and the FTSE of Britain gained 0.4%. Globally, the investors are cautious ahead of the policy review meeting of European Central Bank (ECB), which will be held today. 

U.S. crude oil slid 4.6% to USD 39.94 a barrel, settling below USD 40 for the first time since August as data showed a big increase in U.S. oil supplies, adding to a global glut. Brent crude fell to a six-year low. In its fifth straight loss, the global benchmark declined USD 1.95, or 4.4%, to USD 42.49 a barrel on ICE Futures Europe. The OPEC will hold a summit on Friday to decide on whether to proceed with a production cut or hold on to the current levels of oil production.

Asian stocks fell for a second day; following U.S. equities lower as U.S. oil's slide below USD 40 for the first time since August. Japan's Nikkei 225 lost 0.2%, moving in a tight range as a wait-and-see mood prevailed ahead of the European Central Bank's policy decision later in the day. Australia’s S&P/ASX 200 Index 0.65% and South Korea's Kospi shed 1%. The Shanghai Composite advanced 0.75%.

A SGX Nifty 50 Index future for December delivery was down 34 points at 7,922. Indian market is likely to open in red due to weak global cues.