Markets likely to be wobbly; Route Mobile IPO opens for subscription today!

Indian equities may have a wobbly start on Wednesday, with SGX Nifty futures down by 0.42 per cent in early deals. The key drivers for a weak start for the domestic stock markets are carnage on Wall Street in the overnight trade, the border situation with China getting ugly and the institutional selling in the last couple of days. The FIIs appear to be quite concerned as the border situation with China is worsening and as a result, they have tuned net seller for the month of September to date.

One thing the D-Street would look forward to is the Route Mobile IPO which will open for subscription today.

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Asian indices were under selling pressure during the early trade on Wednesday on the back of sharp losses seen in the overnight trade on Wall Street. China’s Shanghai Composite lost the most as it dropped 1.63 per cent, followed by Japan’s Nikkei 225 and Hong Kong’s Hang Seng. 

Indian markets failed to sustain initial gains and ended Tuesday’s session with modest losses. Nifty and Sensex lost 0.33 per cent and 0.14 per cent, respectively. The broader indices were severely impacted by Nifty Mid-cap and Small-cap plunging 1.43 per cent and 0.96 per cent, respectively. On the sectoral front, barring Nifty IT, all other indices were under selling pressure. Nifty IT gained 1.20 per cent and on the flipside, Nifty Metal, Nifty Pharma, and Nifty PSU Bank became the top losers. India VIX gained 3.24 per cent to end at 22.72.

In overnight developments, the US stocks resumed trading after a long weekend and the bears continued to dominate Wall Street. The market participants were seen anxious as the US-China tensions remained elevated and Saudi Arabia, the world’s largest exporter of crude, slashed crude oil prices, which resulted in a drop in the crude oil price. Fall in crude oil prices has proven to be tremendously harmful to the stock market sentiment. The tech-heavy Nasdaq plummeted a whopping 4.1 per cent to 10,848, followed by S&P 500 and Dow, which lost 2.8 per cent and 2.3 per cent, respectively. European indices too ended the session in red, weighed down by fragile economic data as Eurozone GDP recorded its historic decline in the second quarter.