Pre-market: Markets likely to take a beating

The markets are likely to witness a negative opening following weak trades across the global markets. The Federal Reserve made it official, yesterday, that there were significant downside risks to the economy even as it launched a new plan, 'Operation Twist',  to reduce long-term borrowing costs.

The Fed has revealed plans to shift $400 billion from short-term Treasuries into long-term Treasuries in an effort to boost lending and spur the economy. The Fed's new plan includes lowering long-term borrowing costs in order to bolster the battered housing market.

Overnight, the US markets plunged post the Federal Reserve's announcement. The Dow Jones industrial average dropped 2.5% at 11,125, with all but one of the blue-chip index's 30 components closing in the red. The S&P 500 fell nearly 3% at 1,167 and the Nasdaq shed 2% at 2,538.

In the morning trades, Asian markets have been projecting the evident weakness in the global markets with the Hang Seng, Nikkei and Shanghai Composite indices having shed nearly 1-4% each.

Back home, the Nifty had taken a breather in trade yesterday after Tuesday's strong up move. Analysts suggest that it is likely to get support at around 5,010 - its short-term moving average.

Amng individual stocks, Maruti Suzuki is expected to be in the limelight after the company said it might restart manufacturing its sedan SX4 and compact car A-Star within a week at the Manesar unit. The deadlock between the management and workers, at the Manesar unit, stands unchanged.

Other stocks likely to be in the buzz include Mercator Lines and Reliance Capital.  Airline stocks, Jet Airways, Spicejet, Kingfisher Airlines, are also to be watched out for as a long-standing road block for Indian airline companies seeking capital from foreign carriers may be removed soon. The civil aviation ministry is understood to be favourably inclined to change its stance.