Markets to open marginal negative over global cues

The last Friday was another black day for the global equity markets. The Indian markets touched it 14 moth low over heavy sell off by forieng institutional investoprs (FIIs). For last few days markets were turning bearish on the expectation of US Fed rate hike and China’s economy worsening. The Sensex closed down by 563 points on Friday and closed at 25202. The Nifty too declined 168 points to end at 7655. Both indices have fallen close to 4.5 per cent this week, the worst weekly loss in four years.

The US macroeconomic data was mixed during last few weeks, intensifying the talks about the Fed rate hike during its September 16-17 meeting. This very fact has created considerable selloff from the emerging markets y the FIIs. As per the Indian market is concern, the reserve bank will have its bimonthly meeting on September 29 after Fed meet. Till that time, the speculations over these will drive the markets.

On Friday, European stocks fell and closed lower for the week, weighed down by disappointing German manufacturing data and a US jobs report. The pan-European index added to earlier losses after the US nonfarm payrolls report. US stocks too ended Friday’s session sharply lower, as Fed’s interest rate hike expectations increased after the monthly jobs report.

On the Monday morning, the Asian equity markets showed marginal negative trading. The Chinese index, Japanese index and Australian index were trading marginal lower in the morning. The Indian pre-market barometer SGX Nifty was too trading in marginal negative zone. We too expect the domestic markets open marginal lover over global negative cues.