Markets Are Likely To Open In Negative

Indian equities indices fell for the fifth day in a row on Wednesday as caution ahead of the expiry of monthly derivatives and the market weakness is more to do with financial year closing. The Sensex fell 49.89 points to 28111.83 while the Nifty lost 12.15 points to 8530.80. The broader markets underperformed benchmarks; the BSE Midcap and Smallcap indices slipped 0.5% and 0.7%, respectively.

The merger deal between Sun Pharma and Ranbaxy Labs is finally sealed. Sun and Ranbaxy gained more than 1% after Sun Pharma announced the completion of the merger process. Shareholders will get 0.8 shares of Sun Pharma for each share held in Ranbaxy. As per management, they are looking to expand in the US markets and will invest around USD 300 million for research and development.

U.S. stocks plunged on Wednesday, closing more than 1% lower after government data signaled the U.S. economic expansion was slowing, while gains in the euro prompted a pullback in European stock markets. The S&P 500 index lost 30.45 points, or 1.5%, to 2,061.05. The Dow Jones industrial average fell 292.60 points, or 1.6%, to 17,718.54, while the Nasdaq composite fell 118.21 points, or 2.4%, to 4,876.52.

Declines came on the heels of weak economic data. Orders for durable goods fell 1.4% in February from a month earlier, the Commerce Department said Wednesday. Economists surveyed by The Wall Street Journal expected orders to rise 0.2%. Details of the report were also downbeat. Durable goods orders for January were weaker than previously reported and a key measure of business investment continued to decline in February. Weak economic data tends to dim the outlook for corporate profits and stock prices.

WTI crude settled 3.6% up at USD 49.21 a barrel on Wednesday as a weaker dollar, fighting in Yemen and speculative buying boosted prices in spite of U.S. inventories building to record highs for an 11th week. Brent crude oil rose 1.3% to USD 55.84 a barrel.

In equity markets, European stocks fell, giving up Tuesday's gains. The Stoxx Europe 600 index closed 1.1% lower. Germany's DAX dropped 1.2% and France's CAC 40 lost 1.3%. Britain's FTSE 100 sank 0.4%.

Asian equity markets outside of Shanghai declined on Thursday following a slump in U.S. equities overnight and and an escalation of political turmoil in Yemen. Japan’s Topix index sank 1.6% today and South Korea’s Kospi index fall by 0.34%. Australia’s S&P/ASX 200 Index dropped 0.9%. New Zealand’s NZX 50 Index slid 0.5%. China's benchmark Shanghai Composite index reversed losses in late morning trade and currently up by 1.2%.

SGX Nifty is trading down by 42 points. Indian markets are likely to open in negative following a other Asian markets. Markets will remain volatile as traders will unwind positions due to derivative expiry of March contract on Today and fiscal-year profit booking. The next major trigger for the Indian markets is Q4 results which will start during second week of April, 2015.