Markets to open flat to negative but may witness consolidation

Indian markets opened on a negative note but recovered in the later part of the session to close marginally lower. The unhealthy WPI data, that stands at 3.6 per cent in July as against 1.62 per cent earlier, led to the downfall in the initial session. Metals sector remained the strongest with 1.6 per cent gains; while IT tumbled the most with 1.6 per cent losses.

US markets closed lower amid profit booking post record highs in the prior session ahead of FED minutes of July meet. Telecom sector stocks dragged the markets downwards. Dow tumbled 0.45 per cent and S&P500 fell 0.55 per cent. Nasdaq plunged the most with 0.66 per cent losses.

European markets too ended in red where the better performance from the mining stocks was offset for profit taking in other sectors. Meanwhile UK posted a rise in its consumer inflation to the highest level in last 2 years to 0.6 per cent in July from 0.5 per cent in June. DAX closed down by 0.58 per cent while CAC40 lagged 0.83 per cent. FTSE100 witnessed a downbeat to close 0.68 per cent lower.

Asian markets opened mixed tracking weak global markets that counterpoised the positive impact of rising oil prices. However, Nikkei 225 recovered with appreciation in Yen.  Nikkei 225 is 0.5 per cent down. Hang Seng is marginally up with 0.2 per cent. China’s Shanghai Composite remains negative with 0.47 per cent losses. Australia’s S&P/ASX 200 Index is flat to negative with 0.1 per cent loss. New Zealand’s S&P/NZX 50 is 0.58 per cent up. South Korea’s KOSPI is negative with 0.56 per cent losses.

SGX Nifty is marginally down at 8642 levels. Tracking the negative closure in all other markets may open flat to negative but remain range bound amid recovery.