Global Mkts On Negative Footing; Nifty Likely To Follow

The Indian equity market extended its losing streak to the second consecutive session on Thursday as Fed chair Janet Yellen laid the ground for the US central bank's first rate hike in nearly a decade. The Sensex touched a low of 25,857.35 before settling at 25,886.62, a fall of 231.23, or 0.89% -- its biggest single-day drop since November 18. The Nifty 50 went below the crucial 7,900-mark and closed lower by 67.20 points, or 0.85%, at 7,864.15.

The rupee depreciated by 11 paise to 66.70 against the US dollar in early trade on Thursday after the US Federal Reserve chair Janet Yallen in an overnight statement hinted at a December liftoff. The domestic currency had closed 10 paise lower at 66.59 on Thursday amid dollar buying by banks and importers.

U.S. stocks closed sharply lower Thursday as yields climbed and traders were worried the Fed would raise rates while the economy is too weak. The S&P 500 fell 29.88 points, or 1.4%, to 2,049.63, its biggest decline since Sept. 28. The benchmark index turned negative for the year. The Dow Jones Industrial Average dropped 251.74 points, or 1.4%, to 17,477.67, further into negative territory for the year. The Nasdaq Composite ended the session down 85.70 points, or 1.7%, to 5,037.53

European equities closed sharply under pressure Thursday after investors were left disappointed by the measures announced by the European Central Bank (ECB). Germany's DAX plunged 3.6%, its biggest drop since September. France's CAC-40 index lost 3.6% and the U.K.'s FTSE lost 2.3%. The pan-European STOXX 600 fell sharply, finishing down 3.1%.

Oil prices were 1.4% up or more by Thursday's close, following on a report sourced to a senior OPEC delegate said Saudi Arabia would propose a deal to balance oil markets with help from non-OPEC members in 2016. Brent was up 82 cents at USD 43.32 a barrel while U.S. crude was at USD 40.40, as investors awaited for news from the OPEC meeting this week.

Asian equities traded lower on Friday, after Wall Street closed in the red as investors digested comments from the Fed and the European Central Bank's stimulus package fell well short of markets' high expectations. The Shanghai Composite traded down 42 points or 1.1% at 3,544 as investors remained cautious. Japan's Nikkei 225 hit a three-week low, down 350 points or 1.76% at 19,589. Australia’s S&P/ASX 200 Index was down 90 points or 1.72% at 5,138. South Korea's Kospi continued its losing run to trade 17 points or 0.87 percent lower at 1,977.

A SGX Nifty 50 Index future for December delivery was down 55.5 points at 7,830. Indian market is likely to open in red due to weak global cues.