Markets may see negative opening amid pessimistic global cues

Indian markets may open lower on weak global cues. All eyes will be on the rupee and the bond yields which will determine the further course of action for the markets. The SGX Nifty suggests that Nifty could open lower by 23 points around the level of 11,559.  
  
Asian stocks are trading weak on Wednesday. Hong Kong’s Hang Seng has plummeted 1.05 per cent, China’s Shanghai Composite has lost 0.53 per cent, and Japan’s benchmark Nikkei 225 index has decline 0.29 per cent.   
  
Back home, markets corrected sharply in the last hour of trading on Tuesday and ended the day with a cut of around half a per cent with Nifty slipping below 11,550 and BSE Sensex closing below 38,200. The selling pressure was broad-based as the Nifty advance/decline ratio was skewed in favour of the bears. The trigger for market correction was the weak rupee and rising bond yields. Additionally, the SEBI circular has also raised fears of FPI outflows.  IT sector stocks remained in the limelight with the Indian rupee hitting an all-time low, while Nifty PSU Bank, Nifty Media and Nifty FMCG were top losers. The broader indices witnessed brutal fall as the Nifty Mid-cap and Small-cap indices plunged 2.72 per cent and 2.59 per cent, respectively.  
  
On Tuesday, the US stocks finished modestly lower in the first session of a holiday-shortened week. The ever-present global trade tension continues to keep investors on the fence. However, a 14-year high in the ISM Manufacturing Index helped the stocks to regain ground in the last hour of trading. Amazon became the second company ever to hit a $ 1 trillion market valuation. The Dow Jones Industrial Average slipped 12 points to close at 25,952, the Nasdaq lost 18 points to finish at 8,091 and the S&P dipped 5 points to end at 2,897.   
  
European markets were under the grip of bears in the Tuesday session. Global trade continued to be primary influence along with UK's Brexit concerns. The DAX of Germany plunged 1.10 per cent, the CAC 40 of France dropped 1.31 per cent and the UK’s FTSE 100 finished lower by 0.62 per cent.