Sensex eyes a negative open, tracking global cues, Gift Nifty futures

• India’s Sensex is set to open lower on Wednesday after a negative close on Tuesday.
• Sensex corrected from record highs on Tuesday, undermined by global risk-aversion and poor Indian PMI data.
• US jobs data and Fed Chair Powell speech eyed after disappointing US ISM Services PMI.

The Sensex 30, one of India’s key benchmark indices, is likely to open in the red on Wednesday, having witnessed a corrective decline from record highs on Tuesday.

Global risk-aversion amid downbeat Services PMI releases from India, China and the US sapped investors’ confidence ahead of the highly-anticipated testimony by US Federal Reserve (Fed) Chair Jerome Powell and employment data.

The Bombay Stock Exchange (BSE) Sensex 30 closed nearly 0.25% lower on the day at 73,677.13 on Tuesday.

Stock market news

• Among the top gainers on Sensex were Bharti Airtel, Tata Motors, SBI Bank, Mahindra & Mahindra and Sun Pharma. Meanwhile, the main laggards were Bajaj Finance, TCS, Wipro, Infosys and Bajaj FinServ.
• IT stocks fell as CLSA downgraded TCS, HCL; reiterates sell call on Wipro, LTIMindtree.
• Bharti Airtel expanded its network footprint in Ernakulam and Idukki District under its rural enhancement project
• Markets were disappointed by an unexpected drop in the Chinese Caixin Services PMI to 52.5 in February while China’s 2024 GDP growth target set at around 5.0% also weighs on risk sentiment.
• Further, the HSBC India Services Purchasing Managers' Index, compiled by S&P Global, fell to 60.6 last month from January's six-month high of 62.0, missing estimates of 62.0.
• The US ISM said on Tuesday that its Services PMI slipped to 52.6 last month from 53.4 in January. A gauge of prices paid for inputs by businesses fell to 58.6 from an 11-month high of 64.0 in January
• The US stock markets tumbled on Tuesday, following weak US economic data.
• Markets are currently pricing in about a 63% chance that the Fed could begin easing rates in June, slightly lower than a 67% probability seen at the start of the week, according to the CME FedWatch Tool.
• It’s a holiday-shortened week for the Indian markets, as they will be closed, in observance of the Mahashivratri festival on Friday.
• The main event risks for markets this week will be the US Federal Reserve (Fed) Chair Jerome Powell’s testimony and the all-important US Nonfarm Payrolls data.
• Another event of note includes the week-long China's National People's Congress (NPC) meeting which could flag new stimulus measures.