The key domestic benchmarks are set to open lower today tracking a
mostly weak trend across markets in Asia as the sell-off in oil continued while
a contraction in Chinese manufacturing this month raised concerns over the
health of the global economy. Further, investors may stick to a cautious
approach ahead of the two-day meet of the US Federal Reserve beginning today
where the Fed may decide whether to retain its pledge of keeping interest rates
at low levels for a “considerable time”. China’s Shanghai Composite surged but
Hang Seng slumped after HSBC said that its China manufacturing gauge fell to
49.5 in December from a no-change mark of 50 in the previous month, signaling
contraction in manufacturing over the previous month. Japan’s Nikkei 225 plunged
as a stronger yen dimmed the appeal of exporter stocks. Back home, fresh fears
over growth after the biggest contraction in industrial output in three years in
October may continue to weigh on sentiment.
