Global Negative Sentiments May Keep Indian Markets Under Pressure For Now

Indian equities indices extended gains for the fourth consecutive session on Thursday bolstered by positive global markets. The Sensex was up 309.41 points or 1.2% at 25803.78 and the Nifty was up 93.45 points or 1.2% at 7844.35. Among the sectoral indices, the BSE Metal index was the top gainer, up 0.9%. Tata Steel stock was the best performer on both benchmark indices and added 5% while Hindalco, Vedanta up 3.69% and 3.63% respectively. The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 1.2% and 1.3% respectively. Traders believe market had already factored in the Fed interest rate hike. The rupee rose 31 paise to close at 3-week high of 66.42 per dollar.

After a strong rally on Wednesday, US stocks fell sharply on Thursday as oil prices posted their lowest settlement in nearly seven years. The S&P 500 dropped 31.18 points, or 1.5%, to 2,041.89. The Dow Jones Industrial Average slumped 253.25 points, or 1.4%, to finish at 17,495.84, while the Nasdaq Composite lost 68.58 points, or 1.4%, to close at 5,002.55.

US oil prices ended below USD 35 a barrel on worries about a persistent supply glut. U.S. crude settled down 57 cents, or 1.6%, at USD 34.95 a barrel, its lowest since February 2009. Brent, the global benchmark, fell 33 cents, or 0.9%, to USD 37.06 a barrel, its lowest in nearly seven years.

Europe surged in a relief rally, as the Fed interest rate hike for the first time in nearly a decade. The Stoxx Europe 600 index jumped 1.2% to 364.90, marking its highest closing level in over a week. Germany’s DAX 30 index soared 2.6% to 10,738.12 and France’s CAC 40 index rose 1.1% to close at 4,677.54. Meanwhile, the U.K.’s FTSE 100 index gained 0.7% to 6,102.54.

Asian shares fell on Friday, following a negative lead from Wall Street and as another leg down in commodity prices as well as oil slumped, while the dollar held recent gains. Japan’s NIKKEI 225 lost 0.21% while South Korea’s Kospi index clawed back early losses and traded at flat. Australia’s S&P/ASX 200 Index slide 0.2% while New Zealand’s S&P/NZX 50 Index added 0.2%. China's Shanghai Composite index advanced 0.30%.

A SGX Nifty 50 index future for December Series was up 53 points at 7,807. Indian market may open in red on account of globally negative sentiment.