Market to Open Gap down over Global Cues

After US Federal Reserve unchanged its policy rates, the Indian market gave big cheers for delaying expected foreign institutional investors’ outflow. The Indian markets saw gap up opening on Friday and closed almost 1 per cent higher. The BSE Sensex and NSE Nifty closed at 26219 and 7982, higher by 255 and 82 points on Friday. Almost all sectors except couple of them were closed in green during last trading session last week.

While the Indian markets opened strong, the American markets were weak after the US Federal Reserve maintained status quo over the policy rates. This US Federal Reserve’s stance lowered the confidence about the US economy as the favorable macro economic data is still not imparting confidence for the rate hike. The American markets slipped in deep red on last Friday. The Dow Jones index closed lower by 290 points or 1.74 per cent. The S&P 500 index and Nasdaq index too closed lower by 32 and 67 points or 1.62 and 1.36 per cent respectively.

Earlier, the European stocks too slide in red due to the concerns over improvement in the US economy. The overall markets are in considerable volatile phase as the most awaited US Fed rate hike delayed due to concerns over the pace of economies across globe. The DAX, CAC 40 and FTSE 100 closed lower by 3.06, 2.56 and 1.34 per cent on Friday.

Today morning too, the Asian markets were trading weak over global cues. The Nikkie 225 index, Hang Seng index and ASX 200 index were trading lower by 1.96, 1.33 and 2.66 per cent today morning.

Further, the reserve bank of India governor Raghuram Rajan too admitted that there is very less scope of interest rate cute after US Fed’s present stance. The premarket barometer for Indian markets, SGX Nifty too trading lower by 62 points or 0.78 per cent in the morning. We expect market to open gap down and trade in red zone.