Market likely to open in red on back of weak global cues

Indian equities markets ended lower on Friday, marking their first weekly loss in three weeks on caution ahead of key domestic IIP data to be released after market hours and pivotal global events, the forthcoming US Fed meet the following week, as well as all important Brexit outcome concerns in which Britain would vote whether to stay as European Union member or make an exit, scheduled on June 23. The Sensex ended the week with a loss of 207.28 points or 0.77% at 26,635.75, while the Nifty closed at 8170.05, recording a loss of 50.75 points or 0.62%. The broader markets too remained feeble, with the mid-cap index falling 0.40% and small-cap 0.20%.

The factory output growth in April 2016, at negative 0.8%, was pulled down by the manufacturing sector, which contracted by 3.1% over the same month in 2015. The April numbers represent a break in the rising trend seen in two previous consecutive months of February and March. Industrial output growth in the whole of 2015-16 was measured at 2.4%, compared to 2.8% for 2014-15.

US stock market ended the week on a weak note Friday due to nervousness over an impending vote that could see the U.K. leave the European Union, as well as a drop in oil prices spurred a global selloff. The S&P 500 dropped 19.41 points, or 0.9%, to 2,096.07 and suffered a 0.2% weekly loss, the first in four weeks. The Dow Jones Industrial Average lost 119.85 points, or 0.7%, to finish at 17,865.34, and eked out a weekly gain of 0.3%. Meanwhile, the Nasdaq Composite gave up 64.07 points, or 1.3%, to finish at 4,894.55, for a 1% weekly decline.

European market also closed in red, with investors flocking to the bond markets on concerns over the Brexit vote. The fall in the FTSE was echoed in other European markets, with Germany's DAX down 2.52% and France's CAC 40 dropping 2.24% on Friday.

Asian markets opened sharply lower on Monday morning ahead of US Fed meet this week and jitters over the upcoming referendum on whether the U.K. would remain in the European Union. Japan's Nikkei 225 index tumbled 2.68%, while the Kospi index in Seoul fell 1.57%. New Zealand’s S&P/NZX 50 Index slipped 0.65% after capping its worst weekly loss since mid-February on Friday. Chinese markets were also sharply lower, with the Shanghai composite down 0.73%.

On the domestic front, A SGX Nifty 50 index future for June series is trading down by 73 points at 8,124. Indian markets are likely to open in red due to weak global cues.