Markets likely to open flat tracking SGX Nifty

Indian equities indices remained under selling pressure for the third day in a row as investor concern grew on global economic growth and disappointing domestic earnings. Sentiments also remained downbeat after the Nikkei India Composite PMI Output Index, which maps both manufacturing and services sectors, dropped from 54.3 in March to 52.8 in April. The Sensex was down 127.9 points or 0.5% at 25101.73 and the Nifty was down 40.45 points or 0.5% and ended at 7706.55. Broader markets also are under selling pressure with the BSE Mid-cap index down 1.22% lower; and the Small-cap declining by 0.98%. On the sectoral front, Metal dropped by 3.49% followed by Industrials 2.8%; Realty 2.29%; Auto 2.29%; Telecom 1.64%; and Consumer Durables by 1.33%.

U.S. stocks closed lower on Wednesday, due to weaker-than-expected private-sector jobs data. The Dow Jones industrial average ended down 100 points or 0.6%. The S&P 500 stock index lost 0.6% and the Nasdaq composite was down 0.8%, logging its ninth down day in the past 10 trading sessions. Crude Oil prices were under pressure after a report by the U.S. Energy Information Administration showed larger-than-expected supply build-up.

European stocks ended sharply lower on Wednesday, as investors assessed a mixed bag of corporate news; and renewed pressure in oil prices weighed on the sentiment. Retail sales in the eurozone fell sharply in March, down 0.5% from February, according to data from Eurostat. The Stoxx Europe 600 index closed down 1.1% at 331.80, Germany’s DAX 30 index fell 1% to end at 9,828.25, while France’s CAC 40 index erased 1.1% to close at 4,324.23. The U.K.’s FTSE 100 index lost 1.2% to finish at 6,112.02.

Asian markets are swinging between gains and losses on Thursday in the wake of a fresh reading on China's economy, which exhibited a moderated growth in the services sector. Equity markets in Japan, South Korea, Thailand, and Indonesia are closed for holidays. Australia’s S&P/ASX 200 Index traded flatly while New Zealand’s S&P/NZX 50 Index added 0.48%. China’s Shanghai composite index is trading flatly as its services sector growth cools in April i.e. services PMI has come in at 51.8 for April, continuing to show expansion, but marking moderation from March's 52.2.

On the domestic front, A SGX Nifty 50 index future for May series is trading up by 5.5 points at 7,729. Indian markets are likely to open flat, tracking SGX Nifty. Investors will be keeping an eye on Eicher Motors and Hero MotoCorp results due for release today.