Tracking a sell-off across fellow Asian peers and a bearish finish at Wall Street overnight, the Sensex is poised to extend its run of losses on Wednesday as investors fret over sooner than expected US monetary tightening, souring investor appetite for risky assets. Moreover, a bout of tepid corporate earnings from blue chips has dashed optimism over Asia’s third biggest economy. Tata Motors may continue to skid after reporting poor Q4 earnings numbers. The company’s net income slipped 56.2 per cent to Rs 1,716.5 crore in Q4 FY 2014-15 from the same period a year ago. GAIL, Jindal Steel, Tata Chemicals and Tata Communications will be in focus on Wednesday as they unveil their March quarter earnings report card. The Sensex may witness high volatility as traders roll over their positions ahead of the expiry of the May Futures & Options (F&O) contracts on Thursday. Weakness in the SGX CNX Nifty Index futures for May delivery which fell 0.67 per cent at 8,298 at 10:32 am Singapore time signals a gap down opening at Dalal Street on Wednesday. Meanwhile, Asian stocks were trading lower after American equities succumbed to their biggest decline in three weeks as better than expected US economic data and comments from Fed officials boosted the case for a rise in US interest rates in the near-term. A gauge for capital spending in the US surged 1 per cent in April from the previous month, while sales of new homes climbed 6.8 per cent to a 517,000 annualized pace in April 2015 and the index measuring consumer sentiment rose to 95.4 in May from a four-month low of 94.3 in April. Worries over Greece may also weigh on sentiment as talks between the debt ridden country and its creditors are seen stalling ahead of June’s repayment deadline, pushing the former on the cusp of a default. China’s Shanghai Composite fell as brokers tightened rules for margin lending ahead of a slew of IPOs. Hang Seng was trading lower while Japan’s Nikkei 225 fell prey to slim losses despite a weaker yen.The Sensex tumbled by 112.47 points or by 0.41 per cent to close at 27,531.41 on Tuesday, marking a second straight close below the baseline.
