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Mkt likely to sell off again at open; global macro in focus

Indian equities are likely to start deep in the red, after Asian markets and Wall Street overnight saw deep cuts amid indications of a worsening of global macros.

TheNewsInternational Team

Indian equities are likely to start deep in the red, after Asian markets and Wall Street overnight saw deep cuts amid indications of a worsening of global macros.

The SGX Nifty was trading 1.14 percent lower to 8,283.

In Asia, the Nikkei was trading below 20,000 while Korea’s Kospi moved to its lowest level since August 2013. In general, key indexes across the region were trading between 1 percent and 2.2 percent lower.

This was exacerbated after Chinese Caixin PMI dropped to a nearly six-and-a-half-year low of 47.8 in August, below a Reuters forecast of 47.7.

Further, Greece was thrown into fresh uncertainty as PM Alexis Tsipras resigned, calling for fresh elections, after his bailout package met with intense opposition from lawmakers.

The Nifty yesterday broke the 8,400 level, with open interest data indicating short build-ups in the system increasing.

But in what will bring some respite to risk assets, the US dollar fell as confidence increased that the Federal Reserve would postpone its first rate hike in about eight years from September.

Crude remained choppy while the recent bounceback in gold continued.

Stocks that are likely to remain in focus include Tata Communication, after Economic Times reported Google and Amazon may buy its data centre business.

Automaker Maruti has hiked prices by Rs 3,000-9,000 across its models. While at a press conference yesterday, Infosys CEO Vishal Sikka announced the company’s foray into design thinking, platforms and knowledge-based IT segments.

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