India Markets likely To Start Lower Shows GIFT Nifty; Asian Markets Down

As the boost from Donald Trump’s win in the US presidential elections showed signs of fizzling out on Wall Street in Tuesday’s trading session, where the S&P 500 and Dow Jones broke their 5-day winning streak to close lower, investors’ anticipation of inflation data there that would show the path the US Federal Reserve takes to cut rates, were expected to drive markets around the world towards more volatility before the picture clears.

In that backdrop, at 7:40 AM, GIFT Nifty futures were trading at 23,899, around 60 points behind Nifty futures’ last close.

In the domestic market too, investors would digest a 14-month high retail inflation reading of 6.2 per cent in October, that has almost negated any chance of the Reserve Bank of India’s Monetary Policy Committee deciding to cut rates at its December 4-6 meeting.

Apart from that, the index of industrial production (IIP) grew by 3.1 per cent in September, buoyed by festival-driven demand, reversing a contraction in August.

On Tuesday, benchmark Nifty 50 fell to its lowest level in nearly five months due to sustained selling by overseas funds and sharp losses in index heavyweights, which weighed on market performance. Earnings disappointments and more attractive investment prospects in the US also kept investor sentiment subdued.

Falling for the fourth consecutive day, the Nifty 50 declined by 258 points, or 1.07 per cent, to close at 23,883 — its lowest close since June 26. The BSE Sensex dropped 821 points, or 1.03 per cent, to close at 78,675, marking its lowest level since August 6.

The total market capitalisation of BSE-listed companies fell by Rs 5.2 trillion to Rs 437 trillion. Since reaching all-time highs on September 26, the Sensex has fallen by 8.3 per cent, and the Nifty is down almost 9 per cent.