Sensex, Nifty Likely To Open Lower Today

Domestic stock markets are likely to start Wednesday's session on a negative note, a day after benchmark indices jumped over 1 per cent following seven days of fall. The Singapore Exchange (SGX) Nifty futures - an early indicator of the National Stock Exchange (NSE) Nifty index - climbed as much as 24 points to touch 11,294.00 before reversing direction and dropping 59.5 points from there and hit 11,234.50 on the downside. At 8:30 am, the SGX Nifty futures traded 14.50 points - or 0.13 per cent - lower at 11,255.50. 

Equities in other Asian markets were mixed as an unscheduled rate cut by the Federal Reserve, aimed at shielding the world's largest economy from the impact of the coronavirus outbreak, did little to soothe investor fears over the severity of the pandemic and its impact on global business.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan edged 0.2 per cent higher after easing hopes drove gains on Tuesday. Japan's Nikkei was either side of flat in choppy trade and Australia's S&P/ASX 200 index fell 1.2 per cent.

Overnight in the US, Wall Street benchmark indices fell sharply after the Fed lowered the key lending rate by 50 basis points cut with commentary highlighting the limits of monetary policy.

The Fed's decision to cut interest rates before its next scheduled policy meeting on March 17-18 reflected the urgency with which the central bank feels it needs to act in order to prevent the possibility of a global recession.

The Reserve Bank of India (RBI) said on Tuesday that it is monitoring the impact of the coronavirus outbreak on the economy and is ready to take necessary action to ensure orderly functioning of financial markets. 

The rate action by the US central bank fuelled hopes the RBI will follow by lowering the repo rate further from a more than nine-year low, say analysts. 

On Tuesday, the S&P BSE Sensex index had risen 479.68 points - or 1.26 per cent - to end at 38,623.70 and the broader NSE Nifty benchmark settled at 11,303.30, up 170.55 points - or 1.53 per cent - from the previous close, snapping a seven-day losing streak in which they lost 7.69 per cent and 8.19 per cent respectively.