Market Likely To Remain Weak Tracking Global Markets

The Indian equity market extended losses for fifth consecutive session Tuesday, tracking nervousness in global peers post sharp fall in crude oil prices in the previous session. Moreover, fresh concerns over passing of key reform bills like GST dampened the sentiment. Besides, sustained foreign funds outflows and weakness in the rupee added to the rout. The Sensex fell 219.78 points or 0.86% to 25310.33 and the Nifty 50 managed to close above 7700-mark, down 63.70 points or 0.82% to 7701.70. The broader markets too get hammered. The BSE mid-cap index fell 1.2% and the small-cap index plunged 1.3%.

U.S. stock-market indexes closed lower for a second-straight day Tuesday, as lower oil prices pressured energy stocks for a fifth day and weak Chinese trade data reignited fears of a global slowdown. The Dow Jones Industrial Average lost 117.12 points, or 0.7%, to 17730.51. The S&P 500 declined 14.62, or 0.7%, to 2077.07. The Nasdaq Composite declined 40.46, or 0.8%, to 5101.81.

Crude-oil futures in New York fell USD 2.32, or 5.8%, to USD 37.65 a barrel as fears of a global supply glut deepened after a meeting of the Organization of the Petroleum Exporting Countries ended last week with no agreement to cut production. Brent fell below USD 40 for the first time since early 2009.

European equity markets declined on Tuesday as disappointing trade figures from China offset a more buoyant reading on Eurozone growth. The Stoxx Europe 600 index lost 1.8% to end at 365.75. France’s CAC 40 lost 1.6% to finish at 4,681.86, while Germany’s DAX 30 slumped 2% to 10,673.60. U.K.’s FTSE 100 dropped 1.4% to end at 6,135.22.

Asian stock markets risked slipping to two-month lows on Wednesday as the slide in oil prices continued to weigh on investor sentiment and also cooling demand from China putting more pressure on resources-reliant economies. Japan’s NIKKEI 225 index slid 1.% as metals companies and developers led losses among the measure’s 33 industry groups. South Korea’s Kospi index up 0.15% and New Zealand’s S&P/NZX 50 Index advanced 0.24%. Australia’s S&P/ASX 200 Index declined 0.22% as the world’s two largest mining firms retreated. The Shanghai Composite traded at flat.

A SGX Nifty 50 Index future for December delivery was down 27 points at 7,692. Indian market is likely to remain weak tracking global markets.