A day after global pressures spooked Indian equity markets, the Nifty is likely to open flat with a marginal negative bias. The SGX Nifty, an indicator of the market opening, was trading at 8109, down 3 points at 7:30am.
Global cues, meanwhile, are mixed as the US markets fell for the sixth session in seven days on the steep decline seen in oil prices. Investors are keenly awaiting the Federal Reserve’s monthly policy meeting. The focus will remain on whether the fed reiterates its vow to maintain rates low for a considerable period.
Asian markets gained despite a weak close on US markets as Russian markets continued to tumble. European shares too closed sharply higher on Tuesday reversing earlier losses.
In other asset classes, Brent crude prices continued to decline trading below USD 60 dollars per barrel while the Nymex slipped to a fresh 5-and-a-half year lows. The slide in oil prices has pushed the Russian rouble to new lows. The dollar too fell against major currencies
The rupee slumped to a 13-month low on Tuesday with global risk aversion and rising November trade deficit acting as sell triggers. Bonds prices too were under immense pressure.
Furthermore, the government has moved amendments to the Companies Act in the Lok Sabha. The government has sought to amend 14 key provisions. Some Opposition parties have called the changes cosmetic.
The Insurance Bill, however, could not be tabled in the Rajya Sabha due to the uproar over the conversion issue.