Sensex, Nifty Likely To Open Weak

The domestic stock markets are likely to open in the red, going by weak cues from the Asian and US markets, and indications from SGX Nifty. Trends on SGX Nifty indicate a negative opening for the index in India, with a 50 points loss. At 7:30 am, the Nifty futures were trading at 11,263, lower by 50 points or 0.5 per cent on the Singapore Stock Exchange.

Asian stocks were set to come under pressure on Wednesday after Wall Street sank for the third consecutive day led by declines in heavyweight technology companies, and oil prices hit lows not seen since June.

MSCI's gauge of stocks across the globe shed 2.03 per cent following declines in Europe. Australian S&P/ASX 200 futures lost 1.64 per cent in early trading. Japan's Nikkei 225 futures fell 0.50 per cent. Hong Kong's Hang Seng index futures lost 0.63 per cent.

US stocks closed lower for a third straight session on Tuesday as heavyweight technology names extended their sell-off to send the Nasdaq into correction territory, while Tesla suffered its biggest daily percentage drop after the stock was passed over for inclusion in the S&P 500.

The Dow Jones fell 2.25 per cent, S&P 500 lost 2.78 per cent and Nasdaq Composite dropped 4.11 per cent.

Meanwhile, oil futures tumbled on Tuesday, with Brent dropping below $40 a barrel for the first time since June and U.S. crude off more than 8 per cent, after Saudi Arabia cut its October selling prices and there was a flare-up of coronavirus cases around the world.

U.S. West Texas Intermediate (WTI) crude dropped $3.12 or 7.9 per cent, to $36.65 at 1:00 PM EDT (1700 GMT), the lowest since June 15. Brent crude fell $2.26, or 5.4 per cent, to $39.75 a barrel.

On Tuesday, the Sensex had ended 51.88 points - or 0.14 per cent - lower at 38,365.35, and the Nifty had settled at 11,317.35, down 37.70 points - or 0.33 per cent - from its previous close.