Markets likely to open flat tracking negative cues from Asian peers

Indian markets are expected to open flat as cues from Asian markets continue to be negative. Going ahead, market participants will take cues from the key domestic macro data like July IIP and August CPI which are due to be announced today. The SGX Nifty suggests that Nifty could open up by 6 points around the level of 11,327.  
  
Markets across Asia are trading in the red on Wednesday after a report that China will ask the WTO for permission to impose sanctions on the US. Japan’s benchmark Nikkei 225 has lost 93 points, Hong Kong’s Hang Seng has slipped 113 points and China’s Shanghai Composite has dipped 7 points.  
  
Back home, the dominance of bears continued on Dalal Street as the Indian equity benchmark indices fell sharply for the second straight session on Tuesday. The Indian rupee fell to a fresh low of 72.74 against the US dollar and the weak global cues impacted the sentiments on Dalal Street. Nifty closed below its crucial 11,300 mark and BSE Sensex ended below the 37,500 level. Selling pressure was seen in the broader indices as well with Nifty Mid-cap and Small-cap indices plunging 1.34 per cent and 1.54 per cent, respectively. All the sectoral indices ended with losses, with Nifty FMCG ending as the top loser.  

The US equities bounced off their early lows and ended Tuesday’s session in the positive territory. The optimism on the Wall Street was seen on the back of small business optimism hitting record high, along with job opening reports. The Dow Jones Industrial Average rose 114 points to close at 25,971, the S&P gained 11 points to finish at 2,888 and the Nasdaq climbed 48 points to end at 7,972. On Wednesday, trading will take cues from producer price inflation as well as the Federal Reserve’s Beige Book.   
  
The European indices ended Tuesday’s session on a mixed note. The DAX of Germany dropped 0.13 per cent; but the CAC 40 of France added 0.27 per cent. The UK’s FTSE 100 declined 0.08 per cent.