 "Markets open soft tracking global cues")
Overnight in US, stocks fell the most in three months and a key gauge of market volatility spiked on Wednesday after minutes from the U.S. Federal Reserve's most recent meeting suggested the central bank may slow or stop buying bonds sooner than expected.
The minutes from the Fed's January meeting showed many officials voiced concern last month over potential costs of more asset purchases, suggesting that the program, known as QE, may slow before the pickup in hiring it was intended to deliver.
On Wall Street, the Dow Jones industrial average dropped 0.77 percent, to 13,927 at the close. The Standard & Poor's 500 Index fell 1.24 percent, to 1,512. The Nasdaq Composite Index lost 1.53 percent, to end at 3,164.
European shares fell as surprise dividend cuts by British insurer RSA and Lufthansa and weak results from the likes of Accor, Europe's biggest hotelier, and miner BHP Billiton weighed on sentiment.
Asian shares fell as risk sentiment was shaken by talk in global markets overnight that a hedge fund had been liquidating large positions in commodities, as well as worries the Federal Reserve could slow its bond buying programme.The MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5 percent, snapping a three-day rising streak whilewhile Tokyo's Nikkei stock average opened 0.6 percent lower.
All the sectoral indices have dropped into red this morning. BSE metal index is down 1.6% at 9,771. Capital goods, realty, bankex and auto indices are down around 1% each.
Broader markets have declined in line with the benchmark. BSE mid and small-cap indices are down 0.6% each at 6,673 and 6,633 respectively.
Sterlite has dropped 2.5% at Rs 100. Other metal shares also declined including Tata Steel and Hindalco which were down 1.7% each. ITC, ICICI Bank and Larsen & Toubro were the top draggers - accounting for a 50 points loss on the index.
Meanwhile, Cipla added 0.6% at Rs 384. Wipro and Bajaj Auto added 0.3% each.