Indian Markets
The main Indian equity benchmarks resumed their southbound journey after rising modestly in the previous session, as investors continue to fret over the worsening macro-economic landscape for the domestic economy. A new all-time low for the Indian Rupee is also affecting the sentiment even as the US dollar strengthened versus major rivals.
US and European Markets
U.S. stocks ended in the red Tuesday, giving up an earlier rally, after the Federal Reserve kept rates unchanged and issued a tepid outlook. Dow Jones lost 66 points, or 0.6%; S&P 500 was fell 11 points, or 0.9%; and Nasdaq dropped 33 points, or 1.3%.
European stocks rebounded from their biggest slide in three weeks, as Spain sold more securities than it had planned at a debt auction and a report showed that investor confidence in Germany improved. European stocks finished mixed. Britain's FTSE 100 ticked up 1%, while DAX in Germany fell 0.3% and France's CAC 40 edged down 0.8%.
Asian Markets
Today, all the Asian indices are trading in the red except Shanghai, which is trading higher by 0.2%. Nikkei is trading lower by 0.4% while Taiwan and Strait Times are down by 0.1% each. Hang Seng and Kospi are down marginally. As of IST 8.42 am, SGX Nifty is trading lower today by 41 points.
Currencies
The euro fell to an 11-month low against the dollar on concern European leaders won't agree on ways to expand the region's rescue capacities as debt-strapped nations struggle to fund their deficits.
The Indian rupee on Tuesday breached the 53-per dollar mark, with investors continuing to shift their preference towards the dollar, as the country heads for an economic slowdown. According to dealers, the rupee is likely to remain under pressure, as not much intervention is expected from the Reserve Bank of India (RBI).
Commodities
Among the metals, Nickel rose by 0.8% while Zinc lost 1.3%. Aluminium and Copper fell by 0.3% each. Oil for January delivery rose $2.37 to settle at $100.14 a barrel. Gold futures for February delivery fell $5.10 to settle at $1,663.10 an ounce.
Key events to watch for today
India WPI Inflation - Monthly
US FMOC meeting announcement
EIA Petroleum Status report
EU - Industrial Production
Canada - Manufacturing Sales
Outlook for Today
Today, we expect the Indian Markets to open in the red and trade in a range through the day. If today inflation figures are disappointing, the possibility of CRR rate cut gets reduced and markets could take this negatively
Sources-hdfcsec
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