Pre-market: Shares to open lower amid weak global cues

Benchmark share indices are likely to open lower on Wednesday amid weak global cues.

Most Asian share indices were trading firm except for Hong Kong's Hang Seng which was down 0.6%.

At 8:10AM Indian Standard Time the SGX Nifty was down 40 points at 5,908.

Key US share indices ended sharply lower on Tuesday as the shutdown continued for the second week after lawmakers failed to reach an agreement over the budget and worries over default if the debt ceiling is not raised.

The Dow Jones industrial average ended down 160 points, or 1.1%, to end at 14,777. The Standard & Poor's 500 Index closed 21 points, or 1.2% lower, at 1,655. The Nasdaq Composite Index slumped 76 points or 2%, to end the session at 3,695.

European stocks also ended lower on Tuesday. The FTSE-100 ended 1.1% lower, DAX lost 0.4% while CAC-40 slipped 0.77%.

STOCKS TO WATCH

Hindustan Zinc may see action after SEBI's circular of last week on clearing of option arrangements is good news to Indian companies but will not help existing arrangements such as Hindustan Zinc's call option with the Government of India that was considered invalid under the notification issued in 2000.

State Bank of India could in focus after it reduced the rate on bulk deposits by 50 basis points on Tuesday. SBI has cut rates on seven to 60 days bulk deposits to 8.5 per cent from Thursday.

Apollo Tyres may witness selling pressure after US-based Cooper Tire & Rubber Company  rejected Apollo Tyres’ demand  to cut the proposed $2.5-billion deal size by as much as 25 per cent. Cooper, in its filing on Friday, said it was acting in the best interests of its stockholders, who overwhelmingly approved the pending merger with Apollo for $35 a share. Apollo had offered to buy Cooper at this price in June but later retracted over labour trouble at the latter’s China and US plants.

Infrastructure development company IVRCL may gain after it said that its water division has bagged contracts worth Rs 1,423 crore.

Country's largest realty firm DLF could see some action after it said that it has completed the sale process of 33MW wind turbines project in Rajasthan to Violet Green Power for Rs 67.44 crore.