Markets to Open Gap down over Weak Chinese PMI Numbers

Yesterday the domestic markets opened in green along with other asian markets. However, the gains did not hold for longer time as the European markets opened in red, the domestic markets too turned negative and started trading in red in afternoon half. The Indian equity barometers BSE Sensex and NSE Nifty closed at 25652 and 7812, down by 2.07 per cent. The market mood was so bearish that all the sectoral indices on the Bombay Stock Exchange closed in red.

Yesterday, the European markets slipped in red as the auto maker Volkswagen admitted its manipulations in US emission norms. Further, the correction in commodity too weakened the sentiments across the European markets. The huge sell off created in the markets making all European indices closed in deep red. The DAX, CAC 40 and FTSE 100 indices closed lower by 3.80, 3.42 and 2.83 per cent.

The US markets too saw selloff taking weak cues from the European markets. Also, the Fed reserve strongly expected to increase the interest rate in its December meeting. Further, the alarming signal after the Volkswagen also took beating in auto companies stocks. The Nasdaq, S&P 500 and Dow Jones indices closed in red by 1.50, 1.23 and 1.09 per cent yesterday.

Today morning, the Asian markets extend losses and were trading in red. As the global economies signaled weakening, the China PMI survey too came weak intensifying the worries. The Hang Seng index was trading lower by 2.16 per cent today morning. The Australian markets were too trading lower by 1.82 per cent.

The Indian premarket barometer SGX Nifty was too trading lower by 0.81 per cent today morning. We expect the markets to open gap down over weak Chinese PMI numbers.