Market Likely To Open In Negative

Indian equities market consolidated on Monday ahead of Q1 GDP data and after a rally in previous two consecutive sessions. The Sensex closed 109.29 points, or 0.41% lower at 26,283.09. The Nifty slipped below the 8,000-mark and closed 30.65 points, or 0.38%, down at 7971.30. The broader markets, too, lost ground; the BSE Midcap and Smallcap indices declined 0.2% each. On monthly basis, the Sensex has plunged by 1,831.47 points or 6.51% and the Nifty dropped by 561.55 points or 6.58%.

US stock markets all fell on Monday, ending the worst August in three years as uncertainty about the timing of Federal Reserve rate hikes and persistent fears about a China slowdown continue to weigh on financial markets after last week's wild ride. The Dow Jones industrial average fell 114 points, or 0.7%, to 16,528. The S&P 500 fell 16 points, or 0.8%, to 1,972. The Nasdaq composite slid 52 points, or 1.1%, to 4,776. On monthly basis, the Dow Jones industrial average fell 6.6%, the S&P 500 drop 6.3% and Nasdaq Composite down 6.9%.

European markets too appeared to be heading for another down day. The Stoxx Europe 600 fell 0.5% to 362.79, leaving Europe's benchmark index with a monthly fall of about 8.5%. Among Europe's regional indexes, the German DAX 30 index fell 0.4% to 10,259.46 shedding 9.3% this month. The French CAC 40 index fell 0.5% to 4,652.95. For the month, the index shaved off 8.5%, which also would be the biggest monthly decline in four years. London markets were closed for a bank holiday, but 6.7% drop this month.

OPEC on Monday expressed concern about the drop in oil prices and said it stands “ready to talk” to other producers. Crude oil prices rallied for a third straight day Monday, soaring more than 27% in the last three trading sessions. West WTI oil prices jumped 8.8% to USD 49.20 per barrel for October delivery on the New York Mercantile Exchange. On the London ICE Futures Exchange, Brent crude prices added 7.4% to USD 53.80.

Asian shares fell on Tuesday, following a negative lead from Wall Street and as investors digested the slew of economic data out of China. Japan's Nikkei stock index was down 2.43% in early trade. The Nikkei lost 8.2% in August, its biggest monthly decline since January 2014. Australia's S&P ASX 200 index 1.31% down ahead of the Reserve Bank of Australia's (RBA) policy decision. South Korea's Kospi index slide 1.16%.

China's official Purchasing Managers' Index (PMI) fell to 49.7 in August from the previous month's reading of 50.0, the weakest showing in three years. The benchmark Shanghai Composite index extended losses to ease 2.3% from the previous session. The index closed down 12.5% for August, chalking up its third straight month of declines.

India’s first quarter (April-June) GDP in FY16 slipped from 7.5% in the previous quarter to 7% which is well below expectations and slower than the preceding three-month period. A SGX CNX Nifty Index future for September delivery was down 98.5 points at 7,901. Indian market is likely to open in negative on weak global cues.