Market likely to open lower amid weak Asian markets

Indian equities indices edged lower on Friday, a day after hitting their highest levels this year, but indices extended their gains for the second straight week, and posted a near 1% weekly gain owing to strong overseas flows. On a weekly basis market was led by Metal, Banking, Realty and Consumer Durable sectors on hopes that the Reserve Bank of India (RBI) may further cut policy rates. Snapping a six day long gaining spree, the Sensex dropped 42.24 points to end at 25,838.14; while the Nifty cracked below 7,900-mark falling 12.75 points to 7,899.30. For the week, benchmark gained 0.8% and 0.6% respectively. The broader markets also logged smart gains, with the BSE Smallcap index rising 1.2% and the BSE Midcap index giving 0.9% return for the week.

U.S. stocks eked out with small gains on Friday and posted modest weekly gains for a second consecutive week. The S&P 500 closed unchanged at 2,091.58; the Dow gained 21.23 points, or 0.1%, to 18,003.75; while the Nasdaq Composite Index declined 39.66 points, or 0.8%, to 4,906.23. On the macro front, the US Federal Reserve will review its money policy on April 28-29.

Crude oil finished higher for a third straight week on Friday, supported by expectations that U.S. crude production will continue to decline. WTI crude rose 55 cents, or 1.3%, to settle at USD 43.73 a barrel and a weekly gain of roughly 4.8%. Brent crude climbed 58 cents, or 1.3%, to USD 45.11 a barrel, with prices logging a weekly gain of 4.7%.

European stocks finished lower Friday, dragged down by a disappointing round of inflation data as well as concerns that a car emission-test scandal could spread. However for the week, market gained due to a rally in oil prices. The Stoxx Europe 600 lost 0.3% to close at 348.46; while it gained 1.7% for the week. France’s CAC 40 index dropped 0.3% to 4,569.66, while Germany’s DAX 30 index gave up 0.6% quoting 10,373.49. The U.K.’s FTSE 100 index lost 1.1% quoting 6,310.44.

Asian markets opened lower on first trading day of the week, as investors awaited Central Bank's meeting in the United States and Japan this week, which is expected to hold clues to future policy moves. Japan’s Nikkei 225 index fell 0.75% after rising as much as 0.4%. South Korea’s Kospi index lost 0.16%. Australia’s S&P/ASX 200 Index dropped 0.69%. New Zealand’s S&P/NZX 50 Index slid 0.58%. China’s Shanghai composite index slid 1.06%.

On domestic front, A SGX Nifty 50 index future for April series traded up by 21 points to 7,894. Indian markets are likely to open flat to negative tracking SGX Nifty, and going forward may remain volatile ahead of F&O expiry during the week. Investors will be keeping an eye on UltraTech results due for release today.