Market Is Likely To Open Weak

Indian equities indices rose for the second straight day on yesterday on hopes of further rate cut by the Reserve Bank of India in its next monetary policy on June 2. Forecast of timely monsoon coupled with the government containing fiscal deficit at 4% of the GDP for 2014-15 boosted the market sentiment. The Sensex was up 363.30 points or 1.3% at 27687.30 while the Nifty ended up 111.30 points or 1% at 8373.65. The BSE Mid-Cap index rose 103.15 points or 0.98% to settle at 10,667.07. The BSE Small-Cap index rose 107.13 points or 0.97% to settle at 11,147.92. Both these indices underperformed the Sensex.

After an early stumble, U.S. stocks closed higher on Monday on hopes the Federal Reserve will hold off raising interest rates, while the dollar rallied and Greek bond yields jumped on worries the nation will not be able to make its debt payments. The Dow Jones industrial average ended up 26.32 points, or 0.14%, to 18,298.88. The S&P 500 closed ahead 6.47 points, or 0.3%, to 2,129.2 and the Nasdaq Composite added 30.15 points, or 0.6%, to 5,078.44.

WTI crude oil declined 26 cents to USD 59.43 a barrel on the New York Mercantile Exchange. Brent crude fell 54 cents to USD 66.27 a barrel in London. In metals trading, gold rose USD 2.30 to USD 1,227.60 an ounce, silver rose 17 cents to USD 17.73 an ounce and copper edged down two cents to USD 2.91 a pound. The euro slipped USD 1.1304 from USD 1.1390 on Friday. The dollar climbed to 120 yen from 119.38 yen on Friday.

Europe's main stock markets closed higher Monday, rebounding after a volatile session marked by concerns about resolving Greece's cash crisis. Germany's DAX edged up 1.3% and Britain's FTSE 100 rose 0.1%. France's CAC 40 rose 0.4% and spurring the Stoxx Europe 600 to a 0.4% rise.

Japan shares edged up, drawing support from the new records on the Dow Jones Industrial Average and S&P 500 overnight while other bourses in the region stepped slightly into negative territory on Greek woes. Japan’s Topix index added 0.5% after the yen fell 0.6% against the dollar on Monday. Australia’s S&P/ASX 200 Index was little changed and South Korea’s Kospi index rose 0.44%. New Zealand’s NZX 50 Index slipped less than 0.1%. The Hang Seng index rose 0.12% and the Shanghai Composite Index rose 2%.

SGX Nifty is trading lower by 25 points. Indian market is likely to open weak.AIA Engineering, Asahi Songwon Colors, D-Link (India), Entertainment Network (India), Gmm Pfaudler, Mold-Tek Technologies, Mold-Tek Packaging, Pidilite Industries, Repco Home Finance, Tata Power And Sonata Software would be reporting fourth quarter earnings today.