Markets to remain volatile on Wednesday

With no clear trend being established, the markets may reflect heightened volatility on Wednesday.  

The European indices rallied on Tuesday despite the COVID scar as German DAX turned out to be the best performing index. 

The US markets after discounting the stimulus news, saw investors taking profit off the table on Tuesday. DJIA managed to fall by more than 200 points. NASDAQ, however, was marginally in the green.

Another factor that impacted the market sentiment on Tuesday was the poor consumer sentiment that indicated a lack of consumer confidence in the recovery and suggests that it may take some more time before we get to the pre-COVID level of economic activity. 

The conference board's consumer confidence gauge fell to 88.6 in December from 92.9 in September, missing economists' forecast for a reading of 97.

Asia-Pacific markets, however, are trading in green with Korean & Japanese indices gaining ground on Wednesday.

SGX Nifty is slightly in red thereby, indicating a flat opening for the markets with a negative bias.