The markets may see a soft opening on the back of the subdued cues from the global markets. The SGX Nifty is down eight points at 5,139.
Overnight, in the US markets, fear returned to Wall Street, sending the S&P 500 to another 4% decline, triggered by worries that Europe's debt crisis could engulf French banks and spill onto the US financial sector. The Dow Jones industrial average lost 4.6% to 10,720. The S&P 500 fell 4% to 1,121. The Nasdaq Composite dropped 4% to 2,381.
Asian stocks too fall sharply in the initial trade as a fallout from Wall Street's 4% drop overnight limited by a rise in US stock futures. Almost all the Asian indices are currently in the red except Shanghai Composite up 0.2% and Seoul Composite up 0.8%.
Currently, Nikkei, Hang Seng, Shanghai Composite and Taiwan Weighted have recovered 1-3% from their lows.
As the international markets continue to remain in doldrums, gold climbed above $1,800 an ounce to a new record, reflecting fears over Europe's worsening financial crisis.
Back home, analysts continue to advice either a 'sell on rally' or exit in the current market scenario. On the brighter side, FIIs were net buyers, worth Rs 153 cr yesterday.
According to Angel Broking morning report, the trend deciding level for the day is 5,161 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 5,198–5,235 levels. However, if Nifty trades below 5,161 levels for the first half-an-hour of trade then it may correct up to 5,124–5,086 levels.
