Markets To Open Negative Over Global Cues

As predicted the Indian markets opened in red yesterday due to weak global cues. The selling pressure intensified in the mid afternoon session as index heavy weight and Pharmaceuticals major Lupin posted disappointing quarterly earnings. However, in the last half an hour buying in Auto stocks helped market to recover from the lower levels and the Nifty index managed to close with marginal loss of 27 points at 8232. The BSE Sensex closed at 27,253 down by 109 points. The breadth for the Nifty index has remained negative in today’s trading session, as the advance decline ratio ended on the negative side. Out of 50 stocks 17 stocks closed in the green, whereas 33 stocks closed in the red.

On European markets front, the major European markets closed in red over drop in oil prices and mixed corporate earnings results for latest quarter. The UK market too closed lower over slower than expected data for economic activity. The FTSE closed down by 0.81 per cent yesterday. The other European markets such as DAX and CAC closed down about one per cent on yesterday’s trading session.

The US markets too showed bearish movement. US markets slipped for a second day in a row Tuesday on a combination of slumping oil prices, soft economic data and mixed earnings. The US investors became cautious ahead of the Federal Reserve’s policy statement. The Dow Jones and S&P 500 closed down almost quarter per cent down yesterday. While the Nasdaq was marginal down by 0.9 per cent.

Today morning Asian markets were trading lower today as Chinese and Hong Kong shares fall. The Shanghai Composite was trading down by 0.18 per cent while the Hang Seng was trading down by 0.49 per cent. today, the Nikkei 225 is not trading.

The Indian premarket barometer, SGX Nifty was too trading lower by 0.20 per cent in today’s morning. We are too expecting the domestic markets to open in negative over global cues.