Calmness is likely to return on the Dalal Street, a day after the BSE Sensex witnessed its worst day in over five years. Nifty futures on the Singapore Exchange traded 3 points lower at 8,137, indicating a flat start for stock indices.
The rupee, which held up on Tuesday, is likely to be in focus today after the euro hit a nine-year trough. The partially convertible rupee had closed at 63.57 per dollar yesterday, falling just 0.16 per cent on a day when Indian markets plunged over 3 per cent. (Read the full story here)
Asian stock markets, which fell sharply on Tuesday, recovered in morning trade on Wednesday. Japan's Nikkei benchmark, which had plunged over 500 points yesterday, traded 0.54 per cent higher. (Read)
However, sentiments are likely to be weighed down by continued slide in crude oil prices and renewed concerns over Greece crisis. Oil prices are down 10 per cent in just two days and investors wrestled with the risk of global deflation.
Data from the euro zone due later on Wednesday are expected to show the first annual fall in consumer prices since 2009, piling pressure on the European Central Bank to launch all-out quantitative easing at its next policy meeting on Jan 22.
Overnight, US indices fell for a fifth straight session. For the S&P 500 it was the longest losing streak since late 2013. The Dow shed 0.75 per cent, the S&P 500 0.9 percent and the Nasdaq 1.29 per cent.
(With inputs from Reuters)