The Indian market is expected to open in red today with the SGX Nifty, an indicator of pre-market opening, trading around 8718, down 38 points led by global sell-off.
The market extended losses in last hour of trade Tuesday with the Nifty breaking 8700-mark, dragged by index heavyweights like HDFC, Reliance Industries. However, the key indices trimmed losses towards the end.
Among global markets, in the US, stocks closed at 1 month lows losing more than 1.5 percent lower pressured by a surge in the dollar and some weakness in oil. Both Dow Jones and S&P 500 breached their 50-day moving average, wiping off their 2015 gains. Meanwhile, the US 10-year treasury yield slid to 2.13 percent.
In Asia, markets are weak this morning but Nikkei is the standout performer. Japan’s January machinery orders rose an unexpected 1.9 percent year-on-year, better than expectations for a 1 percent drop.
On a monthly basis, the leading indicator of capital spending notched down 1.7 percent, smaller than the 4.1 percent slump estimated. Yesterday, yen touched its lowest level since July 2007.
Kospi opened down to a two-week low on the back of dismal performances in the financial and automobile sectors.
And in Europe, equities closed sharply lower on the back of the sell-off in US, weakness in oil prices, currency turmoil and ongoing negotiations surrounding Greece.
Mining stocks also fell sharply yet again dragging the FTSE to close down over 2 percent.
In the currency space, the US dollar advances more than 1 percent to 12-year highs as the euro fell below 1.07 for the first time in nearly 12 years on the beginning of quantitative easing in the euro zone.
Among commodities, Brent crude prices slipped nearly 3 percent yesterday to around USD 56 per barrel. However, it pulled back some losses in trade today led by a fall in US crude inventories.
From precious metals space, gold is trading at its lowest level in nearly four months as dollar rose to its highest in nearly 12 years.
Back home, the Land Acquisition Bill sails through the Lok Sabha. The government moves many amendments but refuses to bring back the consent clause and says social impact assessment will be the prerogative of state governments. Centre faces a daunting task to push the bill through Rajya Sabha as the opposition stands firm.
The Centre receives a jolt in the Rajya Sabha with the opposition parties joining hands to send the Mines and Minerals Development and Regulation Bill to a select committee. Timeframe and composition of the panel will be decided today.
Three coal mines won by Jindal Power, BS Ispat and Balco in the auctions come under a cloud. Government sources say they may consider a re-auction of these mines to derive better value. A final decision is expected later this week.
Current account deficit in October to December 2014 narrows to over USD 8 billion which is just 1.6 percent of GDP. But the rupee may continue to weaken due to strength in the dollar.