Markets To Open Lower Taking Negative Cues From Us Markets

The Indian market closed on Friday due to holiday for Holi, a festival of colors. On Thursday, the domestic markets showed flattish positive closing with marginal gains on bourses. However, the mid and small cap companies showed good buying interest and outperformed the broader markets. The metal companies showed considerable selling pressure.

On European market, the markets ended on positive note on last Friday and extended their weekly win streak ahead of the start of massive asset purchase program by European Central Bank (ECB). The French stock market index CAC 40 closed marginal up by 0.02 per cent at 4964. The German stock market index DAX too surged by 0.41 per cent at 11551 during the last trading session. The UK FTSE closed at 6912, down by 0.71 per cent.

The US markets showed huge sell off on Friday’s trading session as strong jobs data increased prospect of earlier rate hike by Fed than its estimated time. The stronger than expected data increased concerns for equity investors which showed heavy selling after the data announcement. The Nasdaq closed at 4927, down by 1.11 per cent. The S&P 500 and Dow industrials closed at 2071 and 17857, down by 1.42 and 1.54 per cent respectively.

The Japanese stocks started Monday on a week note on the firm dollar against yen, downward revision of Japanese economic growth and some profit booking after Friday’s good 1.2 per cent advance of Nikkei. The Japanese index Nikkei 225 was trading lower by 0.73 per cent at 18832.  The Australian stocks too opened lower on reacting losses for key commodities. The Australian index ASX 200 was trading with considerable losses of 1.21 per cent at 5827. The Hong Kong shares too were trading lower on Monday morning and the Hang Seng was trading down by 0.65 per cent. 

The Indian pre market barometer, SGX Nifty was too trading lower by more than one per cent at 8899. We also expect the domestic markets to trade lower taking cues from Asian and American markets.