Market may open on flat to negative note

Indian equities market succumbed to selling pressure Friday, after the retail inflation rose more than estimated in April, raising concerns about the Central Bank's ability to cut interest rates further. The Sensex stayed in the negative zone throughout the day, winding up 300.65 points or 1.17% down at 25,489.57. The Nifty plunged 85.50 points or 1.08% to close at 7,814.90. However, benchmark indices snapped their 2-week losing streak on fresh buying mainly in banking sector buoyed by the clearance of the bankruptcy bill by the government in the Parliament despite rise in inflation figures. For the week, Sensex rose 261.07 points or 1.03% and Nifty climbed 81.45 points or 1.05%. Even the broader market, the BSE Mid-Cap and BSE Small-Cap indices rose 1.74% and 1.96% during the last week.

U.S stocks tumbled Friday, as investors digested weak first-quarter retail earnings with upbeat April sales data in a week which led major indexes to their third consecutive week of declines. The Dow Jones Industrial Average fell 185.18 points, or 1%, Friday to 17535.32. The S&P 500 dropped 17.50, or 0.8%, to 2046.61, while the Nasdaq Composite slipped 19.66, or 0.4%, to 4717.68. The Dow Jones index closed down 1.2% for the week.

Crude oil settled lower Friday as investors worried that recent gain in prices, which finished the week more than 3% higher, may encourage crude producers to ramp up output. WTI oil prices fell 1% Friday to USD 46.21 a barrel, but gained 3.5% for the week. Brent crude fell 25 cents, or 0.5%, to USD 47.83 a barrel, but it traded around 5.3% higher during the week.

European stocks finished higher on Friday as a better-than-expected report on U.S. retail sales lifted sentiments. The Stoxx Europe 600 rose 0.5% to close at 334.68, extending its weekly gain to 0.9%. France’s CAC 40 added 0.6% to 4,319.99; while Germany’s DAX 30 ended up 0.9% at 9,952.90. The U.K’s FTSE 100 climbed 0.6% to 6,138.50.

Markets in Asia opened in the mix on Monday morning, after a slew of disappointing Chinese economic data was released over the weekend. Japan’s NIKKEI 225 index gained 1.05% due to optimism of a supposed sales tax hike delay. The Kospi index in Seoul reversed losses to trade nearly flat. Australia's ASX 200 was up 0.57% and New Zealand’s S&P/NZX 50 Index traded flatly. China’s Shanghai composite has been lowered by 0.24%.

On the domestic front, A SGX Nifty 50 index future for May series is trading down by 12 points at 7,817. Indian markets are likely to open flat to negative due to weak global cues. Investors will be keeping an eye on JK tyre, NBCC and Tata Coffee, results for which are due for release today. Market participation must keep an eye on wholesale price index (WPI) for April slated to be released today at noon.