Market may rebound on the opening bell

Indian stock markets have been caught in bear's grip and closed in the red for the third consecutive trading session on Wednesday. The renewed plunge in oil prices has weighed on stock markets as investors remained deeply concerned about the global economy that is prompting investors to move to safe assets such as gold and developed-world bonds. Sensex tumbled 315 points, or 1.29%, to close at 24,223 on Wednesday; while Nifty declined 93 points, or 1.26%, to end the day at 7,361, below the psychological support level of 7,400. The broader markets also performed poorly with the BSE small-cap index ending 2.25 per cent down while the mid-cap fell 1.30%. In addition, Indian rupee also extended its losses for the third day and breached the 68-mark against the dollar, which also had its bearing on the markets. Rupee fell by 9 paise to 68.07 a dollar yesterday.

U.S. stocks reversed losses to end higher on Wednesday, as 8% jump in oil prices lifted energy and materials sectors. The S&P 500 closed 9.5 points, or 0.5%, higher at 1,912.53. The Dow Jones Industrial Average gained 183.19 points, or 1.1%, quoting 16,336.73. Meanwhile, the Nasdaq Composite ended the day down 12.71 points, or 0.3%, at 4,503.24.

Europe continued the downward drift and closed in the red on Wednesday, due to a sharp rise in oil prices and failed to recover. The Stoxx Europe 600 slid 1.5% to end at 329.43. Germany’s DAX 30 remained lower as the Euro rose, losing 1.5% to end at 9,434.82. The U.K’s FTSE 100 fell 1.4% to finish at 5,837.14 and France’s CAC 40 lost 1.3% to close at 4,226.96.

Oil prices have rebounded, after Russian officials reignited hopes that it could agree to a production cut deal with the Organization of the Petroleum Exporting Countries (OPEC). Brent crude rose 8.31% to USD 35.44 per barrel. Meanwhile, West Texas Intermediate (WTI) crude, added 9.3% to USD 32.66.

Most Asian markets are trading on the upside on Thursday, following a higher finish on Wall Street overnight due to a rebound in crude oil prices. Japan’s NIKKEI 225 index fell 0.75%; while South Korea’s Kospi index added 0.97%. Australia’s S&P/ASX 200 Index climbed 1.58%. New Zealand’s benchmark traded flatly. Chinese markets opened the session in positive territory; Shanghai composite was up 1.64% and Hong Kong's Hang Seng index gained 1.59%.

While on domestic front, a SGX Nifty 50 index future for February series traded up 68 points at 7,437. Indian markets are likely to open in the red following other Asian markets.