Markets may open on a soft note following weak cues from Asia as debt concerns in US and Europe weigh. The Nifty futures on the Singapore Exchange declined 9 points, at 5,565.
There was risk aversion towards equities as investors fretted over lack of consensus to contain high levels of debt in Europe. In United States as well investors dumped stocks as there was no resolution over debt ceiling. The Dow Jones Industrial Average and the Standard & Poor’s 500 Index declined 0.8% each and the Nasdaq Composite Index lost 0.9%.
Shares across Asia lost ground on Tuesday morning led by losses in banking shares. Japan's Nikkei Stock Average dipped 0.7%, Hong Kong's Hang Seng declined 0.3% and China's Shanghai Composite was off 0.5%.
Markets in India will remain lacklustre as debt concerns will keep foreign investors on the sidelines. However, there were some positive developments from the government front. TheCongress led government and Bhartiya Janata Party gave a fresh lease of life to themuch awaited GST (Goods and Services Tax). The government agreed to appoint Sushil Modi, a senior BJP Member for implementing the tax which aims to streamline the complex Indian tax regime.
Among individual stocks HDFC Bank and Ashok Leyland will be closely watched ahead of the first quarter results today.