Domestic stocks are likely to face another challenging session tomorrow after Asian stocks slumped to their three-month lows on Wednesday and following cues from the US, which indicated a slowdown in consumer spending.
Investors were hesitant to commit themselves on Tuesday, ahead of the market close for Independence Day today, due to continued uncertainty regarding the extent of the turmoil in the US sub-prime mortgage market.
Analysts said India, as well as the entire region, was battling to shake off US jitters, though the domestic economy appears to be insulated from the sub-prime worries.
But the cut in profit forecast by Wal-Mart Stores, clear evidence that consumer spending was cooling in the world's biggest economy, would weigh heavily on domestic market sentiment tomorrow, they said.
The Bombay Stock Exchange's Sensex closed at 15,000.91 on Tuesday, almost 800 points down from its peak last month, on heavy selling by global investors after the US sub-prime woes hit markets across the world.
The National Stock Exchange's S&P CNX Nifty closed at 4,370.20 points on Tuesday.
