Markets may open in the red on weak global cues

Indian benchmark indices may open on a negative note on weak global cues and already built-up pressure in the previous session. However, markets may see some short covering later in the day and stage a recovery. Nearly 126 corporate earnings reports would be driving broader indices and sectoral indices during the day and thereby determining the course of the markets in the intra-day session. SGX Nifty is trading marginally up with 0.15 per cent gains at 10426 at 08:11 hours.
 
On Wednesday, Asian markets edged lower in early trade as investors remained cautious ahead of China trade data and following subdued closure in the US markets. Nikkei 225 is down 0.3 per cent, while Hang Seng has recovered to trade flat and Shanghai Composite is up marginally by 0.2 per cent. China trade data is likely to be released later in the day. Imports are expected to increase 16.8 per cent, down from 18.7 per cent in September, while exports are likely to be up 7 per cent, down from 8.1 per cent in September.
 
On Tuesday, domestic stock markets had opened on a positive note driven by surge in oil exploration companies. However, a fall in banks, oil marketing companies and pharma majors led to a strong retreat in the markets, which closed in the red. The market bias was highly weak with 839 advances and 1916 declines on the BSE. The later sudden surge in IT giants could not bring any recovery in the markets. Going forward, higher crude prices may hit rupee valuation, rates and stock markets as a whole. 

The US stock markets took a breather after 9 consecutive days of advance, hitting record highs in most of those sessions. However, the major indices managed to close marginally up. Nasdaq was up by 0.11 per cent, Dow Jones was up 0.04 per cent and S&P 500 remained subdued after 1.3 per cent decline in financial sector stocks. Oil prices corrected a bit to 57.24 dollars per barrel, while Brent crude too settled down by 0.79 per cent to 63.76 dollars per barrel.   

European markets too closed on a negative note, despite a positive start and after rising to their highest levels in almost a year. The move was in the wake of profit-booking and reversal in commodity prices. DAX declined 0.66 per cent, CAC dropped 0.48 per cent and FTSE too tumbled 0.65 per cent.