Markets may open lower tracking weak Asia peers on concerns over downgrade of US government debt by Moody's. The Nifty futures on the Singapore Exchange declined 31 points, at 5,570.
While the US markets closed higher on expectations that the Federal Reserve could again step in to support the economy, the ongoing US debt crisis and a possible downgrade of the US government triple A bond by Moody’s Investors Service soured the mood in Asia. The Dow Jones industrial average rose 0.4%, the Standard & Poor's 500 Index gained 0.3%, and the Nasdaq Composite Index advanced 0.5%.
In Asia Japan's Nikkei Stock Average declined 0.4%, Hong Kong's Hang Seng fell 0.3% and China's Shanghai Composite was off 0.2%.
Back in India analysts expect that the investors will take the terror attack on Wednesday evening in their stride. India Infoline in the morning note said, "three blasts in quick succession have indeed rattled the financial-cum-business hub. History suggests that the Indian markets have always shown resilience in the face of such dastardly attacks. So, expect some recovery later in the day."
However, some amount of weakness in the market may persists ahead of the June Inflation numbers today. Economists expect that Inflation may spike back to 9% due to the diesel and kerosene price hike that happened two weeks ago.
