)
Markets are likely to be highly volatile ahead of today's F&O expiry. Banks will continue to remain in focus. The SGX Nifty was down 16 points at 5,872.
Overnight, U.S. stocks fell on Wednesday and the S&P 500 put in a fifth day of losses, its longest losing streak since the end of 2012, on jitters funding for the federal government would run out and after a drop in shares of Wal-Mart Stores.
Investors worried about two looming Washington deadlines: before October 1 Congress needs to pass stop-gap funding for federal agencies and by October 17 it must raise the federal borrowing limit to avoid a debt default by the United States.
The Dow Jones industrial average was down 0.40 percent, at 15,273. The Standard & Poor's 500 Index was down 0.27 percent, at 1,693. The Nasdaq Composite Index was down 0.19 percent, at 3,761.
Mirroring these developments, Asian share markets were left in limbo on Thursday as a paucity of major economic news left investors with little choice but to sweat out the latest battle over the U.S. budget.
With caution the watchword, MSCI's broadest index of Asia-Pacific shares outside Japan was barely changed, as was Seoul's KOSPI. Japan's Nikkei eased 0.5 percent.
The U.S. dollar was softer on the yen and euro while sovereign bonds benefited from a general air of risk aversion.
Stock to Watch
Aviation stocks may continue to remain under spotlight.
ONGC will likely see an uptick, as the company would drill about four wells this year in Cambay basin in tie up with ConocoPhillips, with an investment of about Rs 200 crore.
Telecom stocks too may be under pressure ahead of the spectrum auction.
