Expecting weak opening owing to negative Asian cues

Chirag Gothi / 19 May 2016

Expecting weak opening owing to negative Asian cues

Asian stocks opened mostly lower Thursday after minutes of the Federal Reserve’s last meeting put the prospect of a June interest-rate hike on the table. On the domestic front, A SGX Nifty 50 index future for May series is trading down by 30 points at 7,847. Indian markets are likely to open in red due weak Asian cues.

Indian equities market snapped a two-day winning streak following severe volatility in global markets as strong US data boosted prospects of an interest rate hike by the Federal Reserve. The Sensex was down 69.00 points or 0.3% at 25704.61, and the Nifty slipped 20.60 points or 0.3% at 7870.15. In broader markets, the BSE’s Small-cap index ended 0.22% higher; while Mid-cap shed 0.01%. The rupee which weakened for the fifth day against the dollar; and touched the 67-level after a gap of two months; but closed 10 paise lower at 66.97, also weighed on the market sentiments.

U.S. stock market indexes gave up gains and ended largely flat after minutes from the Federal Reserve’s most recent meeting indicated that “most” of its members are ready to lift rates as early as June. The S&P 500 closed up 0.42 points at 2,047.63 and the Dow Jones Industrial Average lost 3.36 points, or less than 0.1%, quoting 17526.62. Meanwhile, the Nasdaq Composite Index finished up 23.39 points, or 0.5%, at 4,739.12.

European indexes closed mostly higher on Wednesday as investors reacted to volatile oil markets and awaited the minutes of the latest Federal Reserve meeting. The Stoxx Europe 600 rose 0.9% to end at 337.58. Germany’s DAX 30 rose 0.5% to end at 9,943.23; and France’s CAC 40 gained 0.5% quoting 4,319.90.

Asian stocks opened mostly lower Thursday after minutes of the Federal Reserve’s last meeting put the prospect of a June interest-rate hike on the table. Japan’s Nikkei 225 index has erased its initial gains and is trading flat. South Korea's Kospi index has shed 0.6%. Australia's ASX 200 is down 0.72%; and New Zealand’s S&P/NZX 50 Index is trading lower by 0.36%. China’s Shanghai composite has advanced by 0.62%.

On the domestic front, A SGX Nifty 50 index future for May series is trading down by 30 points at 7,847. Indian markets are likely to open in red due weak Asian cues. Investors will be keeping an eye on CESE, IRB, Lupin and Torrent Pidilite, results of which are due for release today.

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