Markets to open lower amid weak global cues

After breaking a three-day winning streak yesterday key benchmark indices are likely to open flat to negative tracking weak global cues. Market participants will now shift focus on the counting from assembly polls. The political heartland of the country - Delhi goes to assembly polls today.
 
At 8.45am, Nifty futures at the Singapore Stock Exchange (SGX) is trading 23.50 points lower at 6217.50, indicating a weak start for the market.
 
Asian shares could come under pressure on Wednesday after the world's share markets were rattled by fears of an impending reduction in the U.S. Federal Reserve's stimulus following positive U.S. data.

 

European shares suffered their biggest falls since August while Wall Street retreated for a third straight day on Tuesday, dropping from record levels as investors took profits.
 
In Asia, Japanese shares are likely to open lower, with the Nikkei futures falling more than one percent from Tuesday close.
US markets ended on a weak note on Tuesday. The Dow and S&P 500 ended lower for a third straight day, as profit booking set in at record high levels amid signs of a weak holiday shopping season also known as Black Friday there. The Dow Jones index scrapped 94.15 points or 0.59% to end at 15,914.62, while S&P 500 was tanked almost 6 points or 0.32 percent to finish at 1,795 levels. The Nasdaq Composite Index dropped 8.06 points, or 0.20 percent, to close at 4,037.20.

 
 Back home, in a move likely to encourage consolidation in the telecom sector, an empowered group of ministers (EGoM) on Tuesday cleared the much-awaited final merger & acquisition (M&A) guidelines for the sector.
 
Also, in a happy surprise for operators, the EGoM decided to increase the quantum of 1,800-MHz spectrum to be put up for auctions in January to 403 MHz, an addition of 118 MHz, or 41.4 per cent, to what it had proposed earlier. The addition also means that an average 18 MHz of spectrum will be up for sale in each circle - enough for three to four operators.

On the first day of the World Trade Organization (WTO)'s ninth ministerial conference (MC9) in Bali island, India seemed to be losing the support of the G33 coalition of developing countries in taking a strong position on the proposed Peace Clause.
 
While India has stressed on continuing the four-year Peace Clause, which seeks to do away with the cap on food subsidies for farm support in developing countries, till a permanent solution is agreed upon by all the 159 members, key G33 countries such as China and Indonesia hinted they were willing to agree to the interim period of four years.

 
 Banking shares are likely to be in focus today. The country’s largest home financier, Housing Development and Finance Corporation (HDFC), has hiked its home loan rates by 10 basis points (bps) with effect from December 1.
 
The Reserve Bank of India (RBI) plans to introduce increased capital requirements by 2016 for banks regarded as too big to fail, and make them subject to greater regulatory oversight
 
The RBI released a draft of the new guidelines late on Monday, the same day as it issued proposals for counter-cyclical buffers, which would require banks to build reserves during periods of stability in order to weather more difficult times.