Markets likely to open in the red on negative clues from Asian peers

Indian benchmarks indices are expected to open in the red on the back of dismal leads from the Asian markets. As per early SGX indication, Nifty Fut (Nov) may open below 10,200 mark with loss of 33 points at the opening bell.  

Asian equity benchmarks were trading in the red in early trade on Wednesday following lacklustre session on Wall Street that saw major indices closing with modest losses. Japan's  Nikkei 225 has plunged 215 points, Hong Kong’s Hang Seng has slipped 160 points and China’s Shanghai Composite has dipped 19 points.   

Back home, key benchmark indices extended their southward journey for the second straight session and hit lowest closing levels in almost three weeks. Profit-booking was witnessed in broader market as well, as Nifty Mid-Cap and Small-Cap indices slipped 0.21% and 0.64%, respectively. Sector-wise, PSU Bank index was the major culprit in dragging the market lower as it lost 0.65%, followed by Nifty IT and Metal.  At the closing trade, Nifty settled below its important psychological mark of 10,200 and the BSE Sensex closed below the 33,000-mark.   

The US stocks closed modestly lower on Tuesday as uncertainty about the outlook for the Republican tax reform proposal weighed on the markets as the House prepares to vote on the bill later this week. The Dow Jones Industrial Average lost 30 points to end at 23,409. The S&P 500 edged down 6 points to end at 2,579 and the Nasdaq Composite index slid 19 points to 6,737.  

The European benchmarks got off to a positive start on Tuesday; however, the markets failed to hold on to the gains and slipped back into negative terrain resulting in extending their recent losing streak. Export-oriented stocks were under pressure after an increase in the value of euro.  The French CAC 40 index fell 0.49%, German DAX index shed 0.31% and FTSE 100 of the UK closed near the flat line.