Indian Market Likely To Open In Red

It was a poor start to the February series with the Sensex shedding 499 points to close at 2,9183; its weekly fell 95.89 points or 0.33%. The Nifty to lose 143 point to close at 8,809 on 30th January; its weekly fell by 27 points or 0.3%. Broader markets were performed better than benchmarks as Nifty small-cap and mid-cap indices gained between 0.3-0.7% in a week.

Airline stocks will be in focus as jet fuel (ATF) price was cut by a steep 11.3% and now it costs less than diesel. Last month, its rate had fallen below the price at which petrol is sold. Traditionally, auto fuels being of lesser quality than ATF, would cost less. But four consecutive excise duty hikes since November -- totaling Rs 7.75 a litre on petrol and Rs 7.50 on diesel, have reversed this. ATF attracts an excise duty of 8%.

A change in base year for computing national accounts pushed up the economic growth rate for 2013-14 to 6.9%, while earlier estimate on the basis of old series was 4.7%. Similarly, the economic growth rate for 2012-13 has been revised upwards to 5.1%, compared with 4.5% estimated earlier.

The U.S. stock market fell on Friday delivering its third loss in five days and extending its declines for the year as the U.S. economy grew at a slower-than-expected pace in the fourth quarter and mixed earnings fueled market volatility. The Dow Jones industrial average dropped 251.90 points, or 1.5%, to close at 17,164.95. The S&P 500 index lost 26.26 points, or 1.3%, to 1,994.99. The Nasdaq composite fell 48.17 points, or 1%, to 4,635.24. The S&P 500 index fell 3% in January.

U.S. GDP rose 2.6% in the fourth quarter, lower than an expected 3.2% gain, as business spending remained weak. The pace was nearly half the third-quarter's blockbuster 5% growth. However, consumer spending was stronger than expected at 4.3%, a sign lower gas prices were continuing to prop up sentiment.

European markets were lower. Germany's DAX was down 0.41%, France's CAC 40 slid 0.59%, and London's FTSE 100 fell 0.90%. Further supporting the European Central Bank's plan to introduce easing measures in March, the latest figures from Eurostat showed the region at continued risk of slipping into deflation. Consumer prices in the Eurozone slipped 0.6% in January compared to the year earlier, its largest decline since mid-2009.

Oil prices fell early on Monday after U.S. unions called a refinery strike and traders cashed in on strong price gains last week. Brent crude oil futures were trading at USD 51.52 a barrel and U.S. WTI futures were at USD 46.78 a barrel, both down USD 1.46 a barrel. For the week, WTI oil futures climbed USD 3.04, or 5.81%. On the month however, prices lost USD 5.96, or 10.17%. The spread between the Brent and the WTI crude contracts stood at USD 4.75 a barrel by close of trade on Friday, compared to USD 3.20 in the preceding week.

Asian shares got off to a downbeat start on Monday, after weekend Chinese data raised concerns about growth and the U.S. economy grew less than forecast. China's factory sector unexpectedly shrank for the first time in nearly 2-1/2 years last month and firms see more gloom ahead, according to a survey released on Sunday. The official Purchasing Managers' Index (PMI) fell to 49.8 in January, a low last seen in September 2012 and below the 50-point level that separates growth from contraction on a monthly basis.

Japan’s Topix index slid 0.6% as the yen gained 0.2% to 117.26 per dollar, after strengthening 0.7% on Friday. South Korea’s Kospi index was little changed. Australia’s S&P/ASX 200 Index rose 0.3% on rate cut expectations. The Shanghai Composite Index slid 1.9% to 3,147.99 and he Hang Seng Index dropped 0.7%.

SGX Nifty is trading in red and fall by 48 points. Indian market may expect to open in red following other Asian markets. Bayer Crop, Bharat Forge, Cummins India, GIC Housing Finance, Cera, Repco Home and UPL would be reporting third quarter earnings today. Auto companies will start unveiling monthly sales volume data for January 2014 from Sunday, 1 February 2015.