Markets likely to open flat to negative; SBI and Tata Motors to declare results Thursday

Indian stock markets finished lower for the third straight session in a row to hit nearly two-year lows, mainly on continued selling pressure in state-run PSU banks hit by overnight sluggish earnings results, and mounting bad loans amid lingering global slowdown worries. The Sensex ended down 262.08 points or 1.1% at 23758.90; and the Nifty was down 82.50 points or 1.1% at 7215.70. The Broader markets were also witnessing selling pressure. The BSE mid-cap index was down 0.95% and the small-cap index declined 1.42%. Extending gains for the second straight day, the Indian rupee firmed up by another 5 paise to 67.85 despite fall in domestic equities.

An early rally on Wall Street lost steam toward the end of the session as oil prices fell again. Early gains were recorded on Wednesday after Federal Reserve chair Janet Yellen signalled that the Fed still keeps doors open to further interest rate hikes, but flagging risks could delay any further moves. The Dow Jones Industrial Average closed 99.64 points, or 0.6% lower at 15,914.74, its fourth straight day of declines. The S&P 500 finished near the flatline, slipping less than a point to 1851.86. The Nasdaq composite index rose 14.83 points, or 0.4%, to 4283.59, breaking a three-day slide.

The European markets moved higher, ending two days of sharp losses. The Stoxx Europe 600 index jumped 1.9% to end at 315.19. Germany’s DAX 30 index climbed 1.6% to 9,017.29, while France’s CAC 40 index gained 1.6% to 4,061.20. The U.K.’s FTSE 100 index rose 0.7% to 5,672.30. 

U.S. crude oil fell 1.8% to USD 27.45 a barrel after rallying earlier to as high as USD 29.22, while Brent crude rose 1.7% to USD 30.84 a barrel.

On Asian front, Japanese stock markets are closed for the National Foundation Day holiday. Stocks in Hong Kong dropped 4% early Thursday, catching up with deep selloffs in the region as the market reopened after an extended holiday. The Kospi re-opened lower after its three-day holiday, shedding 2.4%. Australia’s S&P/ASX 200 Index advanced 0.3%.

While on domestic front, a SGX Nifty 50 index future for February series traded down 54 points at 7,195. Indian markets are likely to open flat to negative. Investors keep an eye on SBI and Tata Motors, which are to declare their earnings today.