Market May Continue To Remain Under Pressure

Indian equity market continued its southward journey for the fifth consecutive session on Monday to end at their lowest closing levels in 2015 on concerns of foreign fund outflows after robust US jobs data raised hopes that the US Fed may hike interest sooner than expected. The rupee declined by 33 paise to end at a four-week low of 64.08 against the dollar on fresh dollar demand from banks and importers. The Sensex ended down 245 points or 0.92% to 26,523 and the Nifty slipped below the 8,050 mark, ended down 71 points or 0.87% to 8,044. The broader markets saw the deepest cuts; the BSE Midcap and Smallcap indices were down 1.5% and 1.4%, respectively.

U.S. stocks declined third consecutive session on Monday, with the tech stocks leading the market lower. The dollar weakened against the euro and the yen while gold prices rose amid concerns over political uncertainty in Turkey and Greece. The S&P 500 index dropped 13.55 points, or 0.7%, to 2,079.28. The Dow fell 82.91 points, or 0.5%, to 17,766.55, giving it a loss of 0.3% for 2015. The Nasdaq composite declined 46.83 points, or 0.9%, to 5,021.63.

Europe's main stock markets fell Monday, as Turkish shares slumped on political uncertainty in the country following elections, offsetting support for the alcoholic drinks and banking sectors. Markets were also tracking the latest developments surrounding Greece's and its bailout program expires at the end of June and the country faces default on its debts. The Stoxx Europe 600 index dropped 0.9% to 385.39, its lowest closing level since February. Germany’s DAX 30 index fell 1.2% to 11,064.92 and the CAC 40 in Paris shed 1.28% to 4,857.66, while the U.K.’s FTSE 100 index ended down 0.2% at 6,790.04. Turkey’s BIST 100 Index slumped 5.1% to 77,805.41. Greece’s Athex Composite index dropped 2.7% to 764.63, partly recovering from a 4.8% slide last week.

Oil prices fell on signs of weaker Chinese demand and oil market already concerned about oversupply after exporter group OPEC agreed to stick by its policy of unconstrained output for another six months on Friday. Brent crude futures fell 0.9% to USD 62.76 a barrel, after skidding 3.6% last week. WTI crude was down 1% at USD 58.45.

Asia shares were subdued on Tuesday as investors weighed the outlook for U.S. interest rates and Greece’s debt talks. China reported another soft reading on inflation as the consumer price index slipped 0.2% in May, from the month before, to be up 1.2% on the year. Japan’s Topix index slid 0.84% after the yen gained 0.9% against the dollar on Monday. South Korea’s Kospi index traded at flat. New Zealand’s NZX 50 Index lost 0.46%. Australia’s S&P/ASX 200 Index added 0.31% as trading resumes following a holiday on Monday. The Shanghai Composite Index lost 0.3%.

Since SGX Nifty fell 12 points. Indian markets likely to open in red on weak global cues.