A gap down opening is a strong possibility for the Indian markets, this trading session, as weak global cues continue to loom. The Singapore Nifty futures are at 4,750, down 53 points.
In US, stocks ended in the red on Tuesday, amid worries about US economic growth. But losses were trimmed after the International Monetary Fund unveiled an enhanced lending program to help countries struggling with short-term liquidity problems from Europe's debt crisis. The Dow Jones industrial average ended down 54 points, or 0.5%. The S&P 500 slipped 5 points, or 0.4%, and the Nasdaq composite lost 2 points, or 0.1% Earlier, all three indexes were down about 1%.
The turnaround came after the IMF announced that it is revamping its lending facility to better serve "crisis-bystanders," the countries with strong economic policies and fundamentals that are struggling with urgent financing needs during periods of "heightened economic or market stress."
Asian shares drifted lower on Wednesday after a downward revision of US growth data raised new concerns about the faltering global economy. MSCI's broadest index of Asia Pacific shares outside Japan fell 0.3%. Tokyo markets were closed for a holiday. The Nikkei index is down marginally while the Shanghai COmposite and Hang Seng indices have shed 1-2% each.
Back in India, markets are likely to remain volatile for the day as traders roll over positions in futures and options segment on Thursday. On Tuesday, markets ended with marginal gains, albeit off the day's high, as buying continued in metal and IT shares. BSE Sensex touched a high of 16,213 after gaining steadily for most part of the day. The Sensex edged up 119 points to 16,065. Nifty ended up 34 points at 4,812.
The Nifty is expected to get support at 4,720 levels.
Among individual stocks, ONGC will react to reports that the company has withdrawn the papers it filed for the follow-on public offer, but will file the red herring prospectus again if instructed.
SKS Microfinance is another stock likely to see some action today on reports that its founder and chairman may step down.
Sugar stocks will also be in limelight today on reports that the government has allowed one million tonne of sugar export and removed curbs on traders to hold stocks of the sweetener.
Lenders to GTL Ltd and GTL Infrastructure are planning to convert a part of their exposure into equity as part of the group’s ongoing debt restructuring exercise. This could bring the stock in focus today.
Thomas Cook Group Plc said it had instigated fresh talks with its banks after a further deterioration cash position has left it in danger of defaulting on the terms of its borrowing. This could see the stock come under pressure today.
Watch airlines stocks after the industry ministry has moved a draft Cabinet note on allowing 26 percent FDI by foreign airlines in the domestic carriers.
The government has refused to recognise six discoveries of Reliance Industries in its D6 block saying the claims were not backed by prescribed tests, a blow to the company's plan to boost sagging production by developing new fields in the block. This stock is to watch out for.
Hinduja group flagship Ashok Leyland has entered the construction equipment business, along with American company John Deere, with the launch of the 435 backhoe loader. This stock may, too, be in the limelight today.
Keep an eye on pharma stocks after an expert group, set up by the Planning Commission, has called for an urgent reversal of the current position on foreign direct investment in the pharma sector. The panel wants foreign drug multinationals to bring down their stake in the Indian subsidiaries to 49 per cent.