Market May Open In Red

After consecutive decline in three days, the Indian market taking a breath on yesterday closed 34 points higher to end at 27,831.10, on gains in SBI and ONGC shares, amid a firm European trend. Nifty also recovered by 14.95 points (0.18%) to close at 8,355.65. Two-tier stocks attracted buying from retail investors, helping their indices outperform broader benchmarks. The BSE Midcap and Smallcap indices jump 0.93% and 1.06% respectively.

Globally, The U.S. stock market suffered their worst declines in about two months as the price of crude fell to a new five-year low and the Organization of Petroleum Exporting Countries cut its demand outlook for next year. It was the third straight day of losses for the Dow and S&P 500, the Dow Jones industrial average fell 268 points (1.5%) to 17,533. The S&P 500 index dropped 34 points (1.6%) to 2026 and the Nasdaq composite index fell 82 points (1.7%) to 4684.

WTI crude price fall USD 2.88 to close at USD 60.94 a barrel. The price of oil has now dropped more than 40% from a peak of USD 107 in June.

European equities rebounded yesterday in a technical bounce after slumping the previous day on low oil prices and financial strains in China and Greece. London’s benchmark FTSE 100 slipped 0.45% to close at 6,500.04 points. London's benchmark FTSE 100 index rose 0.15% to stand at 6,538.89. The CAC 40 in Paris added 0.37% to 4,279.64 points and Frankfurt's DAX 30 won 0.66% to 9,887.08.

Asian markets open in red. Japanese stock markets dropped after worse than expectations machinery orders report. Japanese core machinery orders fell for the first time in five months in October; Machinery orders dropped a larger than expected 6.4% from September. Japan’s Nikkei 225 and Hang Seng Index slid around 1.0%. The SGX Nifty is also open in red and currently trading at 35.2 point below at 8,454. Today Indian market is likely to open in red on back of global cues. It will remain in under pressure during a day. All are eye on inflation and factory output numbers which will release on Friday.