The markets are likely to witness profit-booking, post the stupendous rally witnessed in the previous session, as the cues from the global markets are not very encouraging this morning. The SGX Nifty indicate a negative opening and the Asian markets are also trading in the red.
The Nifty futures were trading at 8703.50, weaker by 159.5 points, on the Singaporean Exchange around 07:30 hours IST.
Asian stock futures were under pressure on Wednesday after a late, sharp sell-off on Wall Street and as oil prices slumped under pressure from swelling global supplies. Japan’s Nikkei dropped 0.7 per cent and South Korea declined 0.8 per cent. E-Mini futures for the S&P 500 shed early gains to turn 0.7 per cent lower as investors took profits on the recent spike.
Overnight, the Dow Jones fell 26.13 points, or 0.12 per cent, to 22,653.86, the S&P 500 lost 4.27 points, or 0.16%, to 2,659.41 and Nasdaq Composite dropped 25.98 points, or 0.33 per cent, to 7,887.26.
Oil prices climbed on Wednesday, reversing most of the prior session’s losses, as investors pinned hopes on a Thursday meeting where OPEC members and allied producers will discuss output cuts to shore up prices that have tumbled amid the coronavirus pandemic. U.S. crude futures jumped 5.4 per cent to $24.92 a barrel, having shed 9.4 per cent the session before, while Brent crude added 74 cents to $32.61.
Meanwhile, in a late-evening announcement on Tuesday, SBI slashed the lending rates across all tenors by 0.35 per cent. The bank also announced a cut on interest rates on savings deposits to 2.75 per cent, 25 bps less than the existing 3 per cent.
The Sensex had closed 2,476 points, or 8.97 percent, higher at 30,067.21 and Nifty had settled 708 points, or 8.76 percent, up at 8,792.20 on Tuesday.