Indices stare at free fall opening

After crawling for almost five to six trading sessions in the past, the Indian indices mirroring weak cues from global peers are likely to witness a free fall at the opening bell as at 7:55 am, SGX Nifty was trading down by a staggering 118.5 points at 11,222 levels.

As indicated yesterday, after the markets shut its door, the June IIP numbers were out, who were at -16.6 per cent, hinting at contraction matching its slow pace in June. For fresh cues, market participants will look for CPI inflation data for July, which will be released today.

Majority of the Asian indices were trading in red terrain on Wednesday following a negative close on Wall Street overnight. China's Shanghai Composite was lower by 0.81 per cent and Hong Kong's Hang had dropped 0.65 per cent, while Japan's Nikkei 225 was just above the neutral line.

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Even as the Indian markets trimmed some of its gains at the closing, it replicated its prior session performance, where it opened the session with a positive bias and thereafter it traded in a narrow range.

Despite coming off from the day's high, Nifty ended the session above 11,300 mark and Sensex settled above 38,400 mark. The broader markets indices, which were standout performers in the last couple of sessions, underperformed the frontline gauges as Nifty Mid-Cap dropped 0.34 and Nifty Small added 0.37 per cent, respectively. On the sector front, Nifty Media, Nifty Private Bank, Nifty Metal and Nifty Bank were top gainers, while on the flipside; Nifty Pharma, Nifty IT and Nifty Realty were top losers.

On Tuesday, selling in the Eveleth hour dragged indexes lower on Wall Street.  Nevertheless, the noticeable thing on Wall Street was the resurgence of CBOE VIX as it jumped 8.59 per cent to close above 24-mark.  For the tech-laden Nasdaq it was the day of worst impact as it tumbled more than 1.5 per cent and ended the session below 10,800 mark. Meanwhile, the Dow and the S&P before taking a U-turn touched their best intraday levels in over five months.

On the other hand, the European Indices ended the day with solid gains amid upbeat economic data out of Germany and announcement of launch of first coronavirus vaccine from Russia.    

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