Market Likely To Open In Negative

Indian equities market up for second consecutive week with modest gains despite RBI kept the key rates unchanged in its third bi-monthy monetary policy review last week, but strongly raised the hopes for rate cuts ahead. The Bombay Stock Exchange (BSE) Sensex gained 121.83 points or 0.43% to 28,236.39 during the last week and the Nifty rose 31.75 points or 0.37% to 8,564.60. The BSE Mid-cap index was up by 284.50 points or 2.52% to 11,557.52, while the Small-cap index up by 273.67 points or 2.31% to 12,104.47.

The US stock markets fell and the U.S. dollar remained firm on Friday after the monthly U.S. employment data came close enough to forecast to stoke bets the Federal Reserve will raise interest rates as soon as September. The Dow Jones Industrial Average fell for the seventh session in a row; declining 46.37 points, or 0.3%, to 17373.38. The S&P 500 finished down 5.99 points, or 0.3%, at 2,077.57, while the Nasdaq Composite Index was off 12.90 points, or 0.3%, to 5,043.54. For the week, the S&P 500 is off by 1.3%, while the Dow is down 1.8% and the Nasdaq is off 1.7%.

WTI crude for September delivery closed down 79 cents, or 1.8%, to USD 43.87 a barrel, the lowest settlement since March 17, when prices hit a six-year low of USD 43.46 a barrel. For the week, New York-traded oil futures plunged USD 2.99, or 6.9%, the eighth consecutive weekly loss, as worries over high domestic U.S. oil production weighed. Brent for September delivery fell to a session low of USD 48.42 a barrel, the weakest level since March 2009, before closing at USD 48.61, down 91 cents, or 1.84%. On the week, Brent futures lost USD 2.94, or 6.9%, the sixth straight weekly decline, as ongoing concerns over a glut in world markets continued to drive down prices.

European stocks stepped lower Friday, dragged lower by lackluster industrial production data and some disappointing corporate earnings reports. The region’s benchmark Stoxx Europe 600 ended the session down 0.9%, reducing its gains for the week to 0.2%. Germany’s DAX index ended Friday 0.8% lower. France’s CAC 40 index lost 0.7% and the U.K.’s FTSE 100 index declined 0.4%. For the week, the DAX 30 rise of 1.6%. The French and British indexes finished with weekly gains of 1.4% and 0.3%, respectively.

Asian shares fell after China reported bigger-than-expected slides in exports and producer prices and U.S. jobs data boosted trader expectations for a Federal Reserve interest-rate increase hike in September. Japan’s NIKKEI 225 index slid 0.11%. South Korea’s Kospi index declined 0.66%. Australia’s S&P/ASX 200 Index rose 0.66% while New Zealand’s NZX 50 Index fell 0.22%. China's Shanghai Composite index brushed off the weak data set to advance 2% at the start of trade, likely buoyed by prospects of further monetary easing.

A SGX CNX Nifty Index future for August delivery was down 25.5 points at 8,573.50. Indian markets likely to open in negative on account of week global cues. During the week traders will be eyeing the crucial macro economic data of IIP of May and CPI inflation data of June, slated to be announced on August 12. Traders will also be watching the release of WPI inflation data for July to be announced on August 14. Pitti Laminations, Power Grid, RCF, Solar Industries, Tube Investments, Adani Ports, Adani Power, Allcargo Logistics, Eclerx Services, Garware-Wall Ropes, IL&FS Transportation, J&K Bank and Lakshmi Machine would be reporting first quarter earnings today.