Markets may open lower tracking negative global cues

Indian benchmark indices are expected to open lower following negative sentiments prevailing among Asian peers and the weakness in the US markets overnight. The SGX Nifty Index Future has lost 42 points, indicating Nifty may open around 10,866 level. Going ahead, all eyes will be on the monetary policy announcement wherein the RBI is expected to maintain status quo on interest rates.   
  
Asian stock indices stumbled on Wednesday following bloodbath on the Wall Street overnight. Hong Kong’s Hang Seng has slipped 1.46 per cent, China’s Shanghai Composite Index has lost 0.86 per cent and the Japanese stock market Nikkei 225 has fell 0.41 per cent.  
  
Back home, key benchmark indices had a sluggish start and, thereafter, the indices witnessed minor correction in initial trading. However, in the latter half, the indices bounced back from lower levels but failed to end in the positive terrain and, as a result, the indices ended their six-day winning streak on Tuesday. The BSE Sensex lost 0.29 per cent to settle at 36,134 and the Nifty dipped 0.13 per cent to end at 10,870. The broader indices displayed mixed performance with Nifty Mid-cap shedding 0.23 per cent, while the Nifty Small-cap bucking the trend to end with a modest gain of 0.05 per cent. On the sectoral front, Nifty IT surged 1.76 per cent and ended as the top gainer, while Nifty PSU Bank declined the most.  
  
The US stocks witnessed a fierce sell-off on Tuesday as the inversion of some yields grabbed investors’ attention. The two-year US note’s return was higher than the five-year note, causing the inversion. Inversion of these two yields is seen as an indicator of an upcoming economic slowdown. Also, the lack of details surrounding the trade truce between the US and China added to the fall. The Dow Jones Industrial Average plunged 3.10 per cent, the S&P 500 tumbled 3.24 per cent and the tech-heavy Nasdaq slumped 3.80 per cent.  
  
The European equities finished lower on Tuesday. The DAX of Germany declined 1.14 per cent, the CAC of France fell 0.82 per cent and the UK’s FTSE 100 finished lower by 0.56 per cent.