Expecting weak opening on negative global cues

Indian equities markets witnessed consolidation on Tuesday where benchmark indices managed to end up the choppy session near neutral lines as investors opted to book profit after  caution returned following weak economic data from China, which again raised global slowdown fears. The Sensex ended up 12.75 points at 24659.23, and the Nifty slipped 0.05 points at 7485.30. The BSE Midcap index fell 0.25% while the smallcap index gained 0.24%.

U.S. stocks snapped their five-day winning streak to close lower on Tuesday as reversal in oil prices weighed heavily, and also owing to worries about weaker-than-expected Chinese trade data. The Dow industrials declined 109.85 points, or 0.6%, to 16964.10 on Tuesday. The S&P 500 fell 22.50 points, or 1.1%, to 1979.26, and the Nasdaq Composite dropped 59.43 points, or 1.3%, to 4648.82.

Crude-oil prices tumbled Tuesday as traders bet that weekly data will reveal a fourth straight climb in U.S. crude inventories and as the market resumed its doubts over the potential for an output freeze. U.S. crude oil settled down USD 1.40 or 3.69% at USD 36.50 a barrel, after trading higher above USD 38 early in the morning. Brent crude on London’s ICE Futures exchange shed USD 1.19, or 2.9%, to USD 39.65 a barrel.

European stocks also ended lower. The European Central Bank is set to meet Thursday; the Federal Reserve will meet next week. The Stoxx Europe 600 fell 1% to close at 337.48. Germany’s DAX 30 gave up 0.9% to 9,692.82 and France’s CAC 40 lost 0.9% to 4,404.02. The U.K.’s FTSE 100 index dropped 0.9% to 6,125.44.

Most markets in Asia traded lower on Wednesday as oil retreated after worsened economic data from China renewed concerns over the outlook for global growth. The Japanese benchmark Nikkei 225 was lower by 1.4% as the Yen maintained two days of gains, dampning the outlook for export earnings. South Korea’s Kospi index declined 0.1%. Australia’s S&P/ASX 200 Index advanced 0.3% and New Zealand’s S&P/NZX 50 index is up 0.11%. The Shanghai composite dropped 2%.

While on domestic front, A SGX Nifty 50 index future for March series traded down 27.5 points at 7,429. Indian markets are likely to open in weak on account of negative global cues.