Markets Under Pressure Due To Global Cues

The Indian markets slipped after increased concerns over slowdown in the world’s second largest economy China. The global bearish sentiments too exaggerated for Indian equity market after the finanace minister’s comment of favoring the special investigation committee’s recommendation of more clarity on the ownership of the investment through P-notes. The domestic sectoral indices such as Bankex, Capital Goods, IT, Reality and Auto indices seen maximum profit booking and closed below their respective crucial support levels. The Nifty ended 122 points down at 8372 and the sensex ended 323 points down at 27607 yesterday.

The Indian rupee continues to slide after the Chinese Yuan devaluation. Yesterday, the rupee erased early gains and fell to Rs 65.54 per dollar, slumped by 27 paise in afternoon trade.

On the European market front, the Greek continue to impact the major European markets as Greek Prime Minister Alexis Tsipras announced on Thursday that he will resign his post and call for a national election to be held within a month. Earlier Tsipras called poll for the July 5 that resulted in a "no" vote on an austerity-reform package proposed by Greece's international creditors and now Tsipras said he called the election because he is seeking a "clear mandate for a strong government." Taking negative sentiments from the weakness of Chinese economy and the continuing European drama, the S&P 500 touched a more than six-month low on Thursday.

On Friday morning, the slide continued across Asian markets which are keeping eye on the a survey on China's manufacturing sector. The asian markets are trading lower by more that 2 per cent in the morning. SGX Nifty was too trading more than 1 per cent lower in the morning trades. We expect market to remain under pressure over global weak cues.