The markets may see a red opening on account of the negative global cues from the US and Asian markets. The SGX Nifty is down 59 points at 5,440.
Overnight in the US markets, the indices closed in the red as the lawmakers continue to remain at loggerheads over the nation's debt crisis. A voting to House Speaker John Boehner’s debt-reducing plan remains scheduled amidst rejection calls from the Senate Democrats. Owing to this standoff, the Dow Jones Industrial Average closed down 0.5% at 12,240, its fifth straight session of losses.
Taking cues from these developments, the Asian markets started the day in the red. The Japanese shares declined after some weak corporate results with the Nikkei Stock Average down 0.1%. Hong Kong shares started on a choppy note weighed down by the financial sector. The Hang Seng Index lost 0.9%.
The other significant losers among the Asian indices were Taiwan Weighted down, 1% followed by Shanghai Composite, KLSE Composite, Straits Times and Seoul Composite losing in the range of 0.4-0.5%.
Yesterday's major development by the Securities and Exchange Board of India (SEBI) of raising the ownership trigger for a mandatory takeover offer in a company to 25% from 15% now could draw more private equity and other investors into listed companies. Satyen Shah, Head, Equity Capital Markets, Edelweiss Capital Limited views this as a welcome step for Indian promoters who do not have access to bank funds for acquisitions.
The results to watch out for the day are Blue Star, Central Bank, Dena Bank, Federal Bank, ICICI Bank, Idea Cellular, SAIL, Siemens,Mahindra & Mahindra Finance, Raymond and Mcleod Russel.
Angel Broking in its morning report suggests that the trend deciding level for the day is 5,492 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 5,508–5,528 levels. However, if Nifty trades below 5,492 levels for the first half-an-hour of trade then it may correct up to 5,472–5,455 levels.