Markets likely to open positive tracking SGX Nifty

Indian equities indices ended flat on caution ahead of a U.S. payrolls report for April that could influence bets on future U.S. rate hikes. The Sensex ended down 34 points at 25,229 and the Nifty 50 closed 2 points lower at 7,733. In the broader market, BSE Midcap index gained 0.4% while the Smallcap index ended down 0.2%. On a weekly basis benchmark indices were down for second consecutive week with Sensex plunging 378.12 points or 1.47% and Nifty dropping 116.45 points or 1.48%. The rupee posted its biggest weekly decline by 0.3% at 66.5550 a dollar, since February, as foreign funds sold Indian assets amid talk of an increase in interest rates by the Federal Reserve as early as next month.

U.S. stocks closed higher Friday, amid gains in oil prices, but it wasn’t enough for the Dow Industrials and the S&P 500 to avoid a second consecutive weekly decline. Friday’s Labour Department report missed expectations, adding just 160,000 new jobs, compared with an average economists’ forecast of a gain of 203,000. On Friday, the Dow Industrials advanced 79.92 points, or 0.5%, to 17740.63. The S&P 500 rose 6.51, or 0.3%, to 2057.14, and the Nasdaq Composite gained 19.06, or 0.4%, to 4736.16. For the week, the Dow fell 0.2% and the S&P 500 lost 0.4%. The Nasdaq Composite dropped 0.8% for its third week in a row of declines.

European stocks closed mostly in the red on Friday with a downbeat reading on U.S. jobs growth, outweighing a late-day rally in oil prices. The Stoxx Europe 600 fell 0.4% to close at 331.67, bringing its weekly loss to 2.9%. Germany’s DAX 30 rose 0.2% to 9,869.95 and France’s CAC 40 gave up 0.4% to 4,301.24. The U.K.’s FTSE 100 index added 0.1% to 6,125.70.

Despite Friday’s gains, oil prices ended the week lower as concerns over a global supply glut lingered. WTI prices rose 0.8% to USD 44.66 a barrel, but were down 2.7% for the week, ending a four-week win streak. Brent oil for July delivery inched up 36 cents, or 0.8%, to settle at USD 45.37 a barrel. Despite Friday’s modest gains, it fell USD 2.00, or 5.73%, for the week, the first weekly loss in five weeks.

Asian markets opened lower in early trade on Monday; after a disappointing U.S. jobs report came in, while crude oil prices soared on supply woes stemming from wildfires in Canada. Japan’s Nikkei 225 index rose 0.54% as the yen slid 0.3% to 107.46 per dollar. South Korea’s Kospi index lost 0.65%. Australia’s S&P/ASX 200 Index slid 0.31% and New Zealand’s S&P/NZX 50 Index fell 0.22%. China’s Shanghai composite has been lowered by 1.57% due to industrial metals, after disappointing trade data came in from the nation.

On the domestic front, A SGX Nifty 50 index future for May series is trading up by 32 points at 7,781. Indian markets are likely to open in positive tracking SGX Nifty 50. Investors will be keeping an eye on Hindustan Unilever results due for release today. During the week many domestic data reports are due, like April Import & Export data, April CPI and March IIP.