Markets likely to open in red; Banking stocks in focus

Indian equities indices recovered from their three-day losing streak on Thursday on account of buying in beaten down stocks. Market sentiments were buoyed by the clearance of the Finance Bill 2016 in the Lower House (Lok Sabha), which lay thrust on infrastructure and agriculture, and played as a supportive factor. The Sensex closed up 160.48 points or 0.6% at 25262.21; and the Nifty ended up 28.95 points or 0.4% at 7735.50. Broader markets traded lacklustre with the BSE Mid-cap index down 0.09% lower; and the Small-cap declining by 0.03%.

U.S. stocks ended the day nearly flat as indexes stabilised after two days of losses ahead of a key report on employment due Friday. The Dow Jones industrial average rose 9 points, less than 1% to 17,660. The S&P 500 index fell a half of a point to 2,050. The Nasdaq composite fell 8 points, or 0.2% to 4,717.

European stock markets rose for the first time in last five sessions due to a rally in oil prices outweighing concerns over a slowdown in growth in China’s services sector. The Stoxx Europe 600 index rose 0.3% to end at 332.86. Germany’s DAX 30 index gained 0.2% to 9,851.86, while France’s CAC 40 index slipped 0.1% to 4,319.46. The U.K.’s FTSE 100 index rose 0.1% to 6,117.25.

Crude oil prices are sparked by concerns about output cuts amid a raging fire in oil-rich Alberta. WTI prices were up 0.8% to USD 44.16 after rising as high as USD 46.07 earlier. Brent crude, the world benchmark, rose 2.6% to USD 45.77.

Markets in Asia traded lower on Friday following U.S. shares, as investors await closely watched April U.S. non-farm payroll numbers. Australia’s currency slumped and its bonds have surged after the Central Bank lowered its inflation forecast. Japan's Nikkei is down 0.72% as markets there resumed trading since closing for holidays on Tuesday. Australia’s S&P/ASX 200 Index has dropped 0.16% while New Zealand’s S&P/NZX 50 Index is trading flatly. Mainland China markets are darting between positive and negative, with the Shanghai composite lowering by 0.13%. Markets in South Korea, Indonesia and Thailand are shut for public holidays.

On the domestic front, A SGX Nifty 50 index future for May series is trading down by 44 points at 7,722. Indian markets are likely to open in red. Investors will be keeping an eye on Siemens, Titan and Wockhardt results due for release today. Banking stocks will likely be in focus due to the Bankruptcy Bill passed in the Lok Sabha.