Market Likely To Open Negative

Indian equities markets saw buying interest on Monday on strong factory and stable inflation data. Expectations that above-average monsoon rain will improve the odds for further monetary policy easing from RBI also helped to register modest gains on the first trading session of the week. The Sensex jumped 161.25 points or 0.61% to 26,586.55 and the Nifty gained 31 points or 0.39% to 8,013.90. The BSE Midcap closed flat while Smallcap index advanced 0.4%.

U.S. stocks finished broadly lower Monday, after the collapse of weekend talks over Greece’s bailout plan and disappointing economic data. This month's manufacturing index reading fell to negative 2, which means manufacturing activity is contracting. The report suggested manufacturers are still being held back by a strong dollar and cutbacks in investment by oil and gas drillers. The Dow Jones industrial average slipped 107.67 points, or 0.6%, to 17,791.17. The S&P 500 index slid 9.68 points, or 0.5%, to 2,084.43. The Nasdaq composite lost 21.13 points, or 0.4%, to 5,029.97.

U.S. crude futures settled at USD 59.52 per barrel, down 0.7%, while Brent settled down 2% at USD 62.61.

European stock markets slumped Monday as Greek default fears increased after talks between Athens and its lenders broke down on Sunday night. Greece’s Athex Composite Index tanked 4.7% to end at 738.25 and the Stoxx Europe 600 index slipped 1.6% to 383.02, building on a 0.9% decline Friday. Germany’s DAX 30 index fell 1.9% to 10,984.97, while France’s CAC 40 index gave up 1.8% to 4,815.36. The U.K.’s FTSE 100 index lost 1.1% to 6,710.52.

The Bank of Russia on Monday cut its key interest rate to 11.5% from 12.5%, citing lower inflation risks and fears of a considerable slowdown in the economy.

Asian stocks slipped on Tuesday as possibility of Greece defaulting on its debt and the upcoming two-day Federal Reserve meeting sapped risk appetite. China's benchmark Shanghai Composite index lost 2.4% and South Korea's Kospi fell 1.2%. Japan's Nikkei dropped 0.65%, with external factors overcoming bullish domestic incentives. Australia’s S&P/ASX 200 Index reversed an earlier drop to advance 0.3%.

Since SGX Nifty fell 9 points. Indian markets likely to open in negative on account of weak global cues.