The BSE Sensex and NSE Nifty are likely to open in red on Wednesday tracking SGX Nifty, rising concerns over China and falling global markets.
At 8.21 am, SGX Nifty was down 61.50 points, or 0.80 per cent, at 7,711.50.
Asian markets fell on Wednesday as fears of an entrenched global economic slowdown gripped investors, underlined by a weak factory survey from China. Asian peers, Hang Seng and Shanghai were down 2.17 per cent and 1.60 per cent at 21,325.78 and 3134.25, respectively.
A survey has found that China’s manufacturing slump has deepened as activity in the vital sector has fallen to its lowest level in 6 – 1/2 years. The Caixin preliminary survey of factory purchasing managers released Wednesday fell in September to 47.0, its lowest level in 78 months. According to market experts, poor Chinese data may pressurise metal stocks on Wednesday.
US stocks plunged on Tuesday as a selloff in commodities dragged down materials companies while Volkswagen suppliers’ shares dropped following the German carmaker’s emissions scandal. Dow Jones Industrial Average index slid 1.09 per cent at 16,330.47.
Back home, domestic equity markets tumbled over 2 per cent on Tuesday. Jayant Manglik, president, retail distribution, Religare Securities, said, “Sentiments were under pressure on Tuesday after Asian Development Bank (ADB) stated that weaker growth in China this year is expected to cause a slowdown in the rest of Asia. Selling pressure intensified further with decline in the European and US markets in the second half, which triggered steep decline across the board.”
(With inputs from Reuters)