Pre-market: Markets may have a weak start

The Asian markets opened in the red and at 8.20am, the SGX Nifty was down 38 points at 8,515.

The benchmark indices are expected to extend the weakness of the previous session, tracking the weak cues from the global markets. One would have to see if the Nifty retests its crucial psychological level of 8,500 this morning.

Dalal Street had witnessed a late sell-off on Tuesday, with the BSE Sensex losing more than 200 points and Nifty slipping below the 8,600 mark. The runaway rally in Infosys, which soared by 11% on the back of better-than-expected Q1 numbers, was insufficient to lift the gloom cast by profit warnings by Sun Pharma, higher bad loans reported by HDFC Bank and lower-than-estimated earnings by Hindustan Unilver.

At 8.20am, the SGX Nifty was down 38 points at 8,515.

The investors would be nervously watching the developments in Parliament, which got off to a rocky start on Tuesday. The government is seeking to pass the key legislations, such as the GST Bill and Land Acquisition Bill during the session. The ongoing results season would also be keeping the market partipants on the edge.

On the earnings front, Bajaj Finserv, Ceat, JSW Eenergy, KPIT, Network 18, PVR and SKS Micro Finance are likely to unveil their numbers during the day. On the stock-specific front, ACC would ex-dividend today for an interim dividend of Rs 11 per share for the year ended 31 March 2016.

GLOBAL MARKETS

Asian markets have opened weak with Japan's Nikkei down more than a percent due to the contiinuing fall in commodity prices. The Hang Seng, Taiwan, Kospi and SET indices have shed about 1% in early trades.

Overnight, the Dow Jones had shed 181 points, or 1% to 17,919 and Nasdaq Composite had dropped 10 points, or 0.2% to 5,208. Stocks had also closed lower in Europe, with the Dax off more than 1% as investors focused on earnings. Italy was down 1% and Spain was down 0.8%.

STOCKS TO WATCH

Cairn India is likely to be in the news after reporting a 24% drop in its June quarter net profit due to a slide in international oil prices.

Bayer CropScience is set to be on the investors' radar after posting a 1.47% decline in its net profit at Rs 106.9 crore for the quarter ended June 30, due to rise in expenses.

SKF India reported a 14% fall in the second quarter of the calendar year to Rs 46.5 crore, compared to Rs 54.1 crore in the same period last year.

IDBI Bank plans to raise Rs 26,000 crore through a mix of equity and bonds to fund its business growth, according to news reports. Keep an eye on this counter.

South Indian Bank is reportedly planning to seek government's permission for a higher foreign holding limit of 59% compared with the current 49%.

According to media reports, HCC has been awarded a Rs 785 crore contract by Northeast Frontier Railway in joint venture with Coastal Projects Ltd.