Expect Weak Opening, Blame It On Global Cues, GST Bill Uncertainty

Indian shares snapped its four-day long winning streak on Friday after the central government cut country's growth forecast to 7-7.5% as against earlier ambitious estimate of 8.1-8.5% for FY16. Stocks fall also due to globally negative sentiment, but posted their biggest weekly gains in more than two months due to stable currency, improved domestic macro factors and also the U.S. Federal Reserve raising interest rates without any disruptions to global markets. The Sensex plunged 284.56 points or 1.10% to 25519.22, while the Nifty closed below 7800-mark, down 82.40 points or 1.05% to 7761.95. On a weekly basis, Sensex advanced 474.79 points or 1.90% to 25,519.22 and while NSE Nifty gained 151.50 points or 1.99% to 7.761.95. Broader markets outperform the benchmarks during a last week as the BSE Mid- and Small-cap indices gained 3.24% and 2.84% respectively. Rupee appreciated 0.54% during the last week. It moved to 66.42 on December 18 from 66.78 on December 11.

U.S. stocks dropped sharply on Friday erasing weekly gains after oil prices settled to its lowest levels in nearly seven years. The S&P 500 fell 36.37 points or 1.8% to 2,005.52 and ended the week 0.3% lower. The Dow Jones Industrial Average shredded 367.39 points or 2.1% to 17,128.45, booked a 0.8% loss over the week. The Nasdaq Composite ended the day down 79.47 points or 1.6%, at 4,923.08 and fell 0.2% for the week.

European stock markets also slid on Friday as investors remained cautious on the price of oil and ahead of the long Christmas week. The Stoxx Europe 600 lost 1% Friday however for the week, the index added 1.5%, snapping a two-week losing streak. Germany’s DAX 30 fell 1.2% to 10,608.19 and France’s CAC 40 gave up 1.1% at 4,625.26. The U.K.’s FTSE 100 fell 0.8% to 6,052.42.

Asian stocks fell on Monday after a further slump in oil prices weighed on Wall Street on Friday. Japan's Nikkei (.N225) slipped 1.7% after the yen strengthened 1.1% against the dollar on Friday. South Korea’s Kospi index traded at flat. Australia’s S&P/ASX 200 Index slide 0.4% while New Zealand’s S&P/NZX 50 Index advanced 0.44%. China's Shanghai Composite index advanced 0.96%.

A SGX Nifty 50 index future for December Series was down 14 points at 7,760. Indian market may open in red due to weak global cues. Going forward it remains volatile as uncertainty over GST Bill continues to dampen sentiment of the investors.