Top Stock Market action to look out for today

The Nifty is likely to remain under pressure on Wednesday as global cues continue to worsen in the face of consistent selling in equities across the world. Degraded sentiment may take heart from the government's move to exempt trading gains made by foreign investors from Minimum Alternate Tax.

The SGX Nifty Futures signal a 35-point up tick on Nifty futures as a slight bounce back after yesterday's sharp fall is expected in opening trades. Markets in Asia continue to slide, save for equities in Japan. Chinese stocks are down nearly 3 percent and stocks in Hong Kong slid a further 1.3 percent. Australia reports its quarterly GDP numbers and that may set the trend for trading during afternoon.

Major Indices in the US reported sharp losses ahead of the Sept 16-17 meeting of the US Federal Reserve where there are strong chances of a rise in interest rates despite slowing growth. This fear has spooked equities worldwide, making August the worst month for stocks in at least three years. Meanwhile, US indices dropped 2.8-3.0 percent overnight. Losses were similar in European markets, with major indices shedding 2.4-3.0 percent.

The commodity space saw sharp profit booking in Crude oil futures after a stunning 3-day rally. Gold, Silver and Copper futures are quiet.

Meanwhile, the Nifty Index fell 185 points to 7,785 points on Tuesday. Support is pictured in the 7,770-7,576-point band while resistance is seen at 8,050-8,200 range.

The picture in the cash markets was evenly balanced. Foreign Institutional Investors remained net sellers for the second day, exiting 675 crore rupees in equities. Net purchases made by domestic institutional investors totaled 682 crore rupees.

The bears re-appeared in the derivatives market. Traders were net sellers of 698 crore rupees for Index Futures; Net sales of 192 crore rupees for Stock Futures; Net buys of 818 crore rupees for Index options and net buys of 66 crore rupees for Stock Options.

Delivery based selling was observed on MRF.

STOCKS TO WATCH:

TVS Motors, Hero Motor, Tata Motors: Monthly sales data.

INFO EDGE: RBI raises foreign holding limit to 40 percent from 30 percent earlier.

COAL INDIA: Reports 8.9 percent rise in monthly offtake in August to 40.5 mln T.

Image credit: Indiatimes