Markets May Consolidate

The Indian equities markets closed marginally lower in a choppy trade on Tuesday as investors remained cautious due to continued concerns over the health of the Chinese economy. The sensex fell by 43.01 points to end at 25,580.34, while the Nifty fell by 3.90 points to 7787.40. The broader markets, however, outperformed, as the BSE Mid-Cap index rose by 0.56% and the BSE Small-Cap index rose by 0.79%. On the sectoral indices front, the metal index was the highest gainer 2.2% due to the government scrapping 5% export duty on iron ore pallets.

On the global front, The US stocks snapped up a three-day losing streak on Tuesday, eventually ending flat as global markets found more solid grip. The Dow Jones Industrial Average inched up 10 points, or less than 0.1%, to 17159. The S&P 500 gained 0.2%, but the Nasdaq Composite dropped 0.2%.

The European stocks ended higher. The Stoxx Europe 600 recovered from earlier losses to rise 0.6% while the German Dax gained 0.26% the French CAC 40 added 0.34%. The UK’s FTSE 100 rose by 0.72% which was boosted by mining shares that were lifted by higher metals prices.

The oil sector dropped to a two-week low on speculation that a government report would show that U.S. crude inventories climbed the prior week, which was due on Wednesday and another side continued to have concerns about the pace of growth in China. WTI crude fell by 79 cents, or 2.2%, to settle at USD 35.97 a barrel and Brent crude on London’s ICE Futures exchange fell 80 cents, or 2.2%, to USD 36.42 a barrel.

Asian stocks remained under pressure on Wednesday. However China's markets showed an upward movement after its services sector data showed expansion. NIKKEI 225 index slid by 1%. Australia’s S&P/ASX 200 Index dropped 1.34% and New Zealand’s S&P/NZX 50 Index fell 0.28%. South Korea’s Kospi index declined 0.56%. The Shanghai Composite was up 0.98%.

While on the domestic front, A SGX Nifty 50 index future for January Series traded up 6 points at 7,787. Indian markets may open in green and going forward it may consolidate.