Expect market to open lower on account of weak global cues

Indian equities indices extended their losses for the second consecutive day on Tuesday tracking global cues, mainly due to China's weak manufacturing data in the 14th straight month in April; and a forecast of further slowdown in euro zone triggered late sell-off in domestic equities. The Sensex ended the day at 25,229, down 207.27 points; while the Nifty hit a low of 7,735.15 before settling lower by 58.90 points or 0.75% at 7,747. On broader markets front, the Mid-cap index declined 0.85% and the Small-cap fell 0.28%. On the sectoral front, IT sector was majorly down 1.57% followed by Metal 1.34%; Oil and Gas 1.04%; FMCG 1.03%; Banking 1.03%; and Tech 0.97%.

U.S. stocks fell to their lowest level in three weeks on Tuesday, as the yen held stronger against the dollar amid renewed global growth concerns from weaker-than-expected Chinese manufacturing data. The S&P 500 slumped 18.06 points or 0.9% to 2,063.37. The Dow Jones Industrial Average dropped 140.25 points, or 0.8% to 17,750.91. Meanwhile, the Nasdaq Composite fell 54.37 points, or 1.1%, to 4,763.

European markets closed lower across the board, with a strong euro and weak bank earnings zapping investor confidence. The European Commission has trimmed forecast for inflation and growth amid ongoing global weakness. The Stoxx Europe 600 fell 1.7% to 335.56, Germany's DAX fell 1.9% to 9,926.77, France’s CAC 40 stumbled 1.6% to 4,371.98 and the U.K.’s FTSE 100 lost 0.9% at 6,185.59.

Asian markets opened lower in early trade on Wednesday; after U.S. stocks fell overnight amid renewed global growth concerns and crude oil traded below USD 44 a barrel. Japan market is closed for public holiday. Australia’s S&P/ASX 200 Index dropped 1.32%, New Zealand’s NZX 50 Index showed minimal changes and South Korea’s Kospi index fell 0.62%. China’s Shanghai composite index drifted lower by 0.10%.

On the domestic front, A SGX Nifty 50 index future for May series traded down by 31 points at 7,749. Indian markets are likely to open lower due to negative global cues. Investors will be keeping an eye on DHFL and SKS Micro Finance results due for release today.