Sensex, Nifty may open flat with negative bias on mixed Asian cues

Domestic equity markets gained around 1 per cent on Monday on the back of positive macro economic data.

The BSE Sensex and NSE Nifty are likely to open flat with negative bias on Tuesday tracking SGX Nifty and mixed Asian cues.

At 8.29 am (IST), SGX Nifty was down 20 points, or 0.26 per cent, at 7,853.50.

China’s major stock indexes fell more than 1 per cent in early trade on Tuesday. China’s securities regulator said late on Monday that the government’s ongoing clean-up of illegal margin financing has had limited impact on the market, in a apparent move to soothe investors.

Asian peers, Hang Seng and Shanghai were down 0.30 per cent 1.62 per cent and at 21,497.78 and 3,064 while Nikkei was up 1.33 per cent at 18,205.25.

The US markets closed lower on Monday, as investors remained hesitant to buy stocks ahead of the Federal Reserve’s much anticipated policy meeting this week. The Dow Jones Industrial Average lost 62.13 points or 0.38 per cent to 16,370.96, the Nasdaq was down by 16.58 points or 0.34 per cent to 4,805.76 while, the S&P 500 dropped by 8.02 points or 0.41 per cent to 1,953.03.

Back home, domestic equity markets gained around 1 per cent on Monday on the back of positive macro economic data. The consumer as well as wholesale price inflation dived to new lows in August on falling global commodity prices, bolstering chances of an interest rate cut by RBI.