Markets May Open Lower On Weak Global Cues

A benchmark index of Indian equities markets open slightly higher on account of better than expected GDP data came on Friday and firmed up further to high after the manufacturing output i.e. HSBC India PMI accelerated in November at the quickest pace in nearly two years which is rising from 51.6 to 53.3. Finally, at 2 pm market retreated from record highs today ahead of RBI policy meeting on Tuesday, as traders braced for volatility on the expectation that the central bank is likely to keep key policy rates unchanged.

Sensex, after rising to the day’s high of 28,809.64 on the back of initial buying, declined to 28,538.44 on profit-booking. It ended at 28,559.62, logging a fall of 134.37 points i.e. 0.47%. Nifty opened at 8,605.10 and hit a fresh high of 8,623.00 before closing at 8,555.90, down 32.35 points of 0.38%.

The RBI on Friday unexpectedly removed the 80:20 scheme, under which jewellery makers had to mandatorily export 20 per cent of the imported gold before placing further shipments. Therefore, Jewellery stocks gained up to 20% including TBZ, Gitanjali Gems and Shree Ganesh Jewellery House and many others. Titan saw the biggest single day gains since August 21.

US stocks have opened lower on yesterday as weaker than expected Chinese manufacturing data and a downgrade of Japan's credit rating highlighted concerns about global growth. At the closing bell, the Dow Jones Industrial Average fell 51 points i.e. 0.3% to 17,777. The S&P 500 index fell 14 points i.e. 0.7% to 2,053, while the Nasdaq Composite Index shed 64 points 1.3% to 4,727.

European stocks extended earlier losses, with the STOXX Europe 600 index declining 0.5%. FTSE 100 index falling 0.99% to end the day at 6,656.37 points. The Paris CAC 40 dropped 0.29% to 4,377.33 points, while in the DAX 30 shed 0.17% to 9,963.51 points. Despite a rising threat of deflation, the European Central Bank probably won’t announce more stimulus measures at Thursday’s monetary policy meeting, according to euro money market traders polled by Reuters.

China's official PMI for the manufacturing sector fell from 50.8 in October to 50.3 last month, the weakest level since March. A figure come above 50 signals expansion in the sector, while anything below indicates contraction.

Japanese stocks fell, with the Topix index retreating from a six-year high, after Moody’s Investors Service cut the country’s credit rating in the first downgrade of Prime Minister Shinzo Abe’s regime. Currently, the Topix is trading at flat after recovering from low. Hong Kong's Hang Seng and China's Shanghai index both is trading at flat. However market breath is negative. The SGX Nifty is open in red and currently lower 0.43% at 8,563. Indian market is expected to open in negative on account of weak global cues and going forward it may volatile during a day due to RBI policy today.