Market Likely To Open Flat

After scaling higher for a fortnight, the Indian stock market saw some selling pressure this week. The Indian stock market started falling from Monday onwards and for the next two days, recorded steep losses due to the Indian rupee tumbled against the US Dollar, influenced by the turmoil in global currency markets. China’s decision to devalue the Yuan has sparked fears of a currency war. The monsoon session also has been a big disappointment and whatever hopes one had of progress in GST has diminished. However, on Friday, the benchmark indices rebounded sharply and erased a large part of the losses.

The BSE Sensex and NSE Nifty index closed the week 0.59% and 0.54% lower at 28,067.31 and 8,518.55, respectively, on August 14. Broader markets too stayed on a weak wicket, with the BSE Mid-Cap index fell 103.74 points or 0.9% to settle at 11,453.78 and the BSE Small-Cap index declined 337.69 points or 2.79% to settle at 11,766.78. However, on Friday, the benchmark indices rebounded sharply and erased a large part of the losses. The Sensex on Friday jumped 517.78 points on across-the-board gains after the WPI inflation fell (-)4.05% in July, from (-)2.40% in June, raising hopes of a rate cut by the RBI amid a pause in rupee's fall.

U.S. stocks closed higher Friday after a choppy start, preserving slim gains over a tumultuous week which beginning with an unexpected devaluation of the Chinese currency and ending with economic indicators pointing to the possibility the Federal Reserve will raise interest rates in September. The S&P 500 added 0.68% over the week, the Nasdaq was up 0.09%, and the Dow Jones Industrial Average climbed 0.61%.

WTI crude for delivery in September hit lows of USD 41.46, the weakest since March 2009, before ending at USD 42.13, down 0.24% on Friday. For the week, WTI oil futures were off 3.33%, the seventh consecutive weekly loss. Brent oil October futures contract was down 1.81% to USD 48.73 a barrel in late trade.

European stocks slipped on Friday to record their worst week in more than a month triggered by concerns over the China's currency devaluation and Greek economies. Germany's DAX 30 index fell 0.3% to end at 10,985.14, deepening its weekly loss to 4.4%. France's CAC 40 shaved off 0.6% to end at 4,956.47 and lost 3.9% for the week, while the U.K.'s FTSE 100 also closed lower at 6,550.74, down 0.3%. Greece's Athex Composite on Friday dropped 1.9% to 673.93, leaving the index down 0.4% for the week. All eyes will be on Greece ahead of debt repayment deadline of 20 August 2015.

Asian stocks posted a higher open on Monday except Chinese market, as a positive lead from the U.S. market. Japanese shares gained after data showed the economy contracted less than expected. The NIKKEI 225 index rose 0.35% as GDP fell 1.6% on an annualized basis in the April-June quarter. South Korea's Kospi index dropped 0.46% while New Zealand’s NZX 50 Index was up 0.65%. Australia’s S&P/ASX 200 Index gained 0.24%. China's Shanghai Composite index opened down 0.98% and Hong Kong's Hang Seng index fell 1%.

A SGX CNX Nifty Index future for August delivery was down 22 points at 8,524. Indian markets likely to open flat.