Markets likely to open negative following sell-off on Wall Street

Indian benchmark indices are likely to open a tad lower following cautious mood in the Asian markets and sharp fall seen on Wall Street overnight. The SGX Nifty indicates Nifty could open around the level of 10,886, down by 27 points.   
  
Majority of the indices in Asia are in the red terrain on Tuesday following sell-off on the Wall Street overnight. The Japanese stock market Nikkei 225 has lost 1.11 per cent, while Hong Kong’s Hang Seng and China’s Shanghai Composite Index are almost unchanged.   
  
Back home, benchmark indices made a great start to the week and traded mostly in a narrow range for the first-half of the trading session. The market extended its rally in the later part of the trading session and the indices registered gains for the fifth consecutive day. The BSE Sensex rose 0.85 per cent to close at 36,270 and the Nifty jumped 0.77 per cent to finish at 10,888. The broader indices underperformed the frontline gauges, with the Nifty Mid-cap and Small-cap adding 0.46 and 0.28 per cent, respectively.   
  
The US stocks corrected sharply on Monday with the Nasdaq and S&P 500 posting fresh year-to-date closing lows. The correction was mainly due to lingering concerns about the global economic growth and the continued uncertainty about the trade between the US and China. Additionally, some disappointing US economic data such as US Homebuilder Confidence unexpectedly dropping to three-year low in December contributed to the decline. The Dow Jones Industrial Average dropped 2.11 per cent, the tech-heavy Nasdaq plunged 2.27 per cent and the S&P 500 tumbled 2.08 per cent.  
  
The European stocks finished sharply lower on the first day of the trading session of the week. The DAX of Germany decreased 0.86 per cent, the CAC of France plummeted 1.11 per cent and UK’s FTSE 100 fell 1.05 per cent.