The Wall Street's massive sell-off overnight over the fears of a coronavirus pandemic will be a major trigger for the domestic indices today.
Fears of a pandemic escalated after the coronavirus spread to Spain and dozens of countries, from South Korea to Italy, accelerated emergency measures while Iran’s virus death toll rose to 16. Adding to recent fears was an alert from the US Centers for Disease Control and Prevention on Tuesday warning Americans to prepare for the spread of coronavirus in the United States.
The Dow and the S&P 500 tumbled 3 per cent on Tuesday in their fourth straight day of losses as investors struggled to gauge the economic impact. The Nasdaq Composite also dropped 2.77 per cent.
Today's session might also see an increase in volatility ahead of the expiry of February series derivative contracts tomorrow.
Besides, investors will look at stock-specific action, the Rupee's trajectory and oil price movement for further cues.
Meanwhile, SBI Cards and Payment Services has set a price band of Rs 750-755 per share for its initial public offering (IPO). SBI Cards will be the first credit card company to list in the domestic markets.
Following the sell-off on the Wall Street, Asian shares also fell on Wednesday. MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.6 per cent while Australian shares were down 1.77 per cent. Japan's Nikkei stock index slid 1.1 per cent. The SGX Nifty indicated a gap-down opening for the domestic indices today,
Selling pressure continued in the Indian stock market on Tuesday as the BSE Sensex slipped 82 points at 40,281, while the Nifty 50 fell 31 points to 11,798. According to experts, the Nifty has reached a crucial support zone of 11,750-11,783. Violation of 11,750 support could drag Nifty towards the 200 DMA support, currently placed at 11,684.
Read by: Chirinjibi Thapa