Market set to edge lower in early trade on weak global cues

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slide 66.50 points at the opening bell tracking weakness in Asian markets and overnight slide on the Wall Street.

In overseas stock markets. Asian stocks edged lower after sharp slide on Wall Street overnight amid a plunge in oil prices. Latest data showed that China's Caixin services purchasing managers' index (PMI) hit a six-month high at 52.4 in January 2016, from 50.2 in December 2015. In China, the Shanghai Composite index was currently off 1.25%. US stocks closed sharply lower yesterday, 2 February 2016 on renewed decline in oil prices.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 113.98 crore yesterday, 2 February 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 323.23 crore yesterday, 2 February 2016, as per provisional data released by the stock exchanges.

Shares of public sector oil marketing companies (PSU OMCs), oil exploration and production (E&P) firms and aviation stocks will be in focus after sharp decline in oil prices. Brent for April settlement was currently off 2 cents at $32.70 a barrel. The contract had declined $1.52 a barrel or 4.43% to settle at $32.72 a barrel during previous trading session.

On the macro front, the Nikkei India Service PMI data for the month of January 2016 is due at 10:30 IST today, 3 February 2016. India's Nikkei India Service PMI rose to 51.60 in December 2015 from 50.20 in November 2015.

Stocks of metal and mining companies, oil sector firms and public sector companies led losses for key benchmark indices yesterday, 2 February 2016. The Sensex lost 285.83 points or 1.15% to settle at 24,539, its lowest closing level since 28 January 2016.

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