Global Cues May Force Indian Markets To Open In Red

Indian shares rose on Friday (the first day of January series), led by banking, real estate, auto and capital goods stocks while benchmark indices extended gains for the third straight week with the Sensex reclaiming the psychological 26K-level and the Nifty doing the same with key 7,900-level. On Friday, the Sensex rose 43.36 points or 0.17% to 26,160.90 and the Nifty climbed 16.85 points or 0.21% to 7,963.2. In the broader markets front, the BSE midcap and smallcap indices rose 0.92% and 0.88%, respectively. On a weekly basis, the Sensex rose by 312.19 points, or 1.2%, while the Nifty surged by 102.15 points or 1.3%. The broader markets outperformed the benchmark indices last week, with the BSE small-cap and mid-cap indices rose by 1.79% and 2.06% respectively.

On the global front, US stock markets were closed on Friday on the occassion of New Year holiday. The S&P 500 index fell by 0.73% in the last week while the Dow Jones Industrial Average decline by 0.72%, remaining below the psychologically important 18,000 level. Meanwhile, the NASDAQ fell by 0.81%.

Last week, WTI crude oil prices were volatile and fell around 4% to settle at USD 36.6 per barrel and the Brent crude oil prices fell 3.7%, settling at USD 37.9 per barrel on December 30. However, oil prices jumped over 2% in the moring on Monday (Jan 4) after Saudi Arabia cut off diplomatic relations with Iran on Sunday, giving Iranian diplomats 48 hours to leave the country. Brent crude oil climbed over 2.5% at USD 38.50 per barrel on Monday, while WTI futures were up 76 cents or 2.05% at USD 37.80 a barrel.

Asian stocks mostly opened on a negative note on Moday after Saudi Arabia cut off diplomatic relations with Iran on Sunday while a surge in crude oil boosted energy producers. Also weak China PMI data weighted down Asian markets. Japan's Nikkei 225 fell 2.63% while South Korea's KOSPI slide 1.51%. Australia’s S&P/ASX 200 Index lost 0.3%. China's benchmark Shanghai Composite index slide 3%. While on domestic front, A SGX Nifty 50 index future for January Series traded down 34 points at 7,914. Indian markets may open in red due to negative global cues.