Markets may open on negative note ahead of F&O expiry

The Indian shares continued their southward journey for the seventh straight day on Wednesday. Sentiments were dampened after the news broke out that the India army had struck at Naga insurgents' hideouts along the Indo-Myanmar border while retaliating against firings from the rebels. The BSE Sensex declined 440 points to close below the 31,200-mark while Nifty nosedives 136 points to settle below the 9,750-mark. 

The European markets ended Wednesday’s session with gains. The German DAX index advanced 0.41%. The French CAC 40 gained 0.25% and the FTSE 100 of the UK rose 0.38%.  

The US’ stocks rallied on Wednesday, with the tech-centric Nasdaq outperforming its counterpart. The strength on Wall Street was seen due to a positive reaction to the release of a Republican tax reform plan that looks to reduce tax rates on businesses.  The Dow Jones Industrial Average advanced 56 points to close at 22,341 and the S&P 500 gained 10 points to finish at 2,507. The Nasdaq Composite Index surged 73 points to end the day at 6,453.  
  
Equity markets in Asia lacked direction on Thursday.  Japan's Nikkei 225 has inched up 59 points,  Hong Kong’s Hang Seng has shed 120 points and China’s Shanghai Composite has slipped 5 points.   

On the last day of expiry of September series derivative contracts, markets are expected to open on a cautious note. The Nifty futures on the Singapore Exchange were trading at 9,720 with loss of 16 points.