The key domestic benchmarks are tipped to open on a bearish note today tracking a mostly weak trend across markets in Asia as a sharp slowdown in China’s manufacturing underscored concerns over the health of the world’s second biggest economy, overshadowing Federal Reserve’s commitment to continue to keep interest rates low. FOMC minutes signaled the possibility of the Fed wrapping up its QE program by October. The minutes showed that the Fed intends to maintain borrowing costs at low levels for a considerable time period even after QE ends. China’s Shanghai Composite fell after HSBC said that China’s manufacturing gauge dropped to 50.3 this month from 51.7 in July, with a reading above 50 signaling expansion. Hang Seng was trading lower while Japan’s Nikkei 225 rose as a weaker yen boosted the appeal of exporter stocks. With the Fed signaling its commitment to keep interest rates low for some time, emerging markets such as India are likely to continue to attract foreign funds, supporting the Sensex.
