The BSE Sensex and NSE Nifty are likely to open in red on Wednesday tracking SGX Nifty and weak China equity market.
At 8.27 am, SGX Nifty was trading 1.40 per cent lower at 7,777.
Asian peers, Shanghai Composite Index and Hang Seng were down 3.62 per cent and 0.20 per cent at 2,865.02 and 21,362.68. Nikkei 225 was up 0.40 per cent at 17,877.49.
Asian stocks fell on Wednesday as investors feared fresh rate cuts in China would not be enough stabilise its cooling economy or halt a collapse in its stock markets. Following a near 20 per cent plunge in stock prices in three days, the People’s Bank of China cut interest rates and lowered the amount of reserves banks late on Tuesday in a much-anticipated move that some economists said was long overdue.
Overnight, major US stock indexes shot up after China’s policy easing but later gave up all their gains, with the S&P 500 ending down 1.4 per cent.
Domestic equity markets on Tuesday opened with a positive gap and later it made a low at 7,667 due to weak Chinese market condition and finally closed on the positive territory due to extreme short term oversold situation, support from both DII and retailers and positive European cues. The 30-share Sensex and 50-share Nifty closed 1.13 per cent and 0.92 per cent higher at 26,032.38 and 7,880.70, respectively.
(With inputs from agencies)