Markets to Open Flat with Positive Bias

The domestic market seems to be losing strength in the last hour of trading session on global cues. As we had mentioned the markets to remain flat due to lack of market triggers, the concerns over Greece debt issue and US Fed rate hike weighed the market after European markets opened yesterday. However, the benchmark index Nifty on NSE breached the psychological level of 8700 during the trading session, but managed to close above those levels at 8712. The mid and small cap stocks too followed the broader markets and their respective indices were down by 0.38 and 0.28 per cent respectively. 

Meanwhile, the government continued to launch its key reforms. The Lok Sabha has passed the Land Acquisition Bill yesterday late in a day. Though the diluted version of the bill after making nine amendments to win over BJP allies such as Shiv Sena and Akali Dal, the way in which the Congress opposition persists, the government has tough way ahead in the upper house where it is in minority. 

The European markets were closed in deep red due to concerns over the Greece debt issue. The investors developed fresh concerns about the Greece not to agree on reform program after the Euro zone official warnings. The concerns further intensified on the expected US Fed rate cut during the year after an unexpected strong jobs data in US. The UK markets showed huge bloodbath on the bourses with its benchmark index FTSE 100 losing more than 2.5 per cent in a single trading session. The French CAC 40 and German DAX too closed in red with 1.12 and 0.71 per cent loss on Tuesday. 

The US markets too were closed in red as the equity markets investors started discounting the Fed rate cut which will be expected later in the year. The Dow Jones index suffered its worst one day point drop in last five months. The Dow Jones Industrial Average closed lower by 1.85 per cent yesterday. The S&P 500 and Nasdaq too closed in deep red with 1.70 and 1.67 per cent losses on bourses respectively. 

Today morning, the Asian markets showed mixed trend after the US market selloff. The Japanese market was showing some buying interest and the Nikkei 225 was trading higher by 0.44 per cent. The Hong Kong shares were too developing some buying interest as the Hang Seng was recovering from its opening 0.4 per cent losses and trading down by just 0.17 per cent in the morning. However, the Australian markets were following the US markets and the ASX 200 was trading lower with 0.49 per cent losses on the exchange. 

The Indian pre-market barometer SGX Nifty was trading lower with 0.44 per cent losses at 8717 in the morning. However, we expect market to open flattish with some positive bias in the market.