Market May Slight Bounce Back After Six Day Sell-off

The Indian equity market has extending losses for the sixth straight session. Investors remained cautious due to uncertainty over GST Bill and volatility in oil prices. Main opposition Congress disrupted proceedings and accused the government of pursuing a "vendetta" against the Gandhi family on Tuesday, in a blow to hopes of passing the proposed GST Bill. The Sensex was down 274.28 points or 1.08% at 25036.05 while the Nifty slipped 89.20 points or 1.16% trading at 7612.50. Selling pressure was visible across the board with broader markets underperforming the benchmark indices. The BSE Mid-cap index plunged 1.76% and the small-cap index slumped 2.2%.

U.S. stocks fell for a third-straight day Wednesday as the price of oil struggled to stabilize. A slump in several big technology companies is also leaving the stock market broadly lower. The Dow Jones Industrial Average dropped 76 points, or 0.4%, to 17492, after earlier gaining as much as 200 points. The S&P 500 declined 0.8% and the Nasdaq Composite fell 1.5%.

The price of U.S. crude oil jumped then reversed course after the U.S. Energy Information Administration said crude-oil inventories fell last week but distillates, which include heating oil and diesel, grew more than expected. U.S. crude fell 0.9% to USD 37.16 a barrel, a nearly seven-year low. Brent crude, the international standard, fell 15 cents to close at USD 40.11 a barrel in London.

European stocks fell for a second straight session Wednesday, as investors tried to digest what was happening with oil prices, commodity stocks and currency markets. The Stoxx Europe 600 ended 0.4% lower at 364.19. Germany’s DAX 30 dropped 0.8% to 10,592.49, while France’s CAC 40 fell 1% to 4,637.45. The U.K’s FTSE 100 lost 0.1% to 6,126.68.

Asian stocks slipped on Thursday as weak oil prices continued to feed global growth worries, while the yen’s biggest gain in three months weighed on Japanese exporters and health-care shares declined. Japan’s NIKKEI 225 index dropped 0.8 percent after the yen jumped 1.2% against the dollar on Wednesday, the most since Sept. 1. Australia’s S&P/ASX 200 Index slipped 1.55%. South Korea’s Kospi index fell 0.1%, with the Bank of Korea widely forecast to maintain its record-low key interest rate Thursday. New Zealand’s S&P/NZX 50 Index retreated 0.25% and the nation’s dollar jumped after the central bank cut its key interest rate. The Shanghai Composite was up 14 points or 0.39% as investors digested news of long-anticipated initial public offering (IPO) reforms in the country.

A SGX Nifty 50 Index future for December delivery was up 14 points at 7,660. Indian market may see slight bounce back after six days losing streak. Still investors should remain cautious.