Markets Likely To Open Negative Due To China Data Point To Sharper Slowdown

Indian equities indices continued its downtrend for the fourth consecutive session on Monday. Overall it was a consolidation day for the market ahead of F&O expiry this week. The Nifty managed to hold the 8550 level amid consolidation, down 20 points to 8550.90. The Sensex slipped 69.06 points to 28192.02. The broader markets underperformed benchmarks; the BSE Midcap and Smallcap indices were down 0.8% and 1.3%, respectively.

U.S. stocks erased modest gains in the last 15 minutes of trading, finishing slightly lower on Monday. The S&P 500 fell 3.68 points, or 0.2%, to close at 2,104.42. The Dow Jones industrial average lost 11.61 points, or 0.1%, to 18,116.04 while the Nasdaq composite slipped 15.44 points, or 0.3%, to 5,010.97.

Crude oil futures soared on Monday, as the euro continued its steady rally against the dollar upon expectations of an interest rate hike by the Federal Reserve at some point this year. The price of oil edged up amid signs that the growth in U.S. supply may be slowing. Benchmark U.S. crude rose 88 cents to close at USD 47.45 a barrel in New York. Brent crude added 60 cents to close at USD 55.92 in London.

European equities closed lower on Monday, with Greece in the spotlight as Greek and German leaders meet amid tensions over Athens' bailout program. The Euro Stoxx 600 Index finished around 0.7% lower, extending losses during the session. Germany's DAX lost 1.2% and France's CAC 40 shed 0.7%. The FTSE 100 stayed above the 7,000 mark, adding 0.2% and erasing an earlier decline of 0.4%, as mining stocks rallied.

Asian stocks widened losses across the board early trading on Tuesday as China’s economy is showing new signs of flagging, as an early indicator of factory activity this month fell to an 11-month low. The HSBC flash Purchasing Managers' Index (PMI) fell to an 11-month low 49.2, from a final reading of 50.7 in February, well below the boom-bust level of 50. Japan's Nikkei stock average was down about 0.18% shortly after the open, edging away from the previous session's 15-year highs. Australia's S&P ASX 200 index trimmed gains due to a contraction in China's factor activity. China's Shanghai Composite widened losses to 0.9% on the back of the data.

SGX Nifty is trading down by 16 points. Indian markets are likely to open in negative due to China data point to sharper slowdown. Going ahead it will remain volatile in the current week due to ahead of March month F&O expiry due on 26 March 2015.