Indian markets may witness gap down opening due to Rexit

Indian markets may start the day with sluggish opening after the Reserve Bank of India (RBI) governor Raghuram Rajan declared on Saturday that he will not be extending for a second term as governor. Meanwhile, Finance Minister Arun Jaitley said that the decision pertaining to the successor will be taken shortly. After Rexit, BREXIT fears would add volatility in capital markets.

Indian equities markets witnessed a positive trend on Friday. Meanwhile Nifty was able to sustain 8150 level. The Sensex increased 100.45 points or 0.38% quoting 26625.91; and the Nifty upped 29.45 points or 0.36% quoting 8170.20. Overall sectoral indices experienced a positive scenario during entire session on Friday. However, Healthcare index declined by 0.78% during the session.

The Dow Jones industrial average decreased 57.94 points, or 0.33%, quoting 17675. The S&P 500 index also declined 6.77 points, quoting 2071. However, U.S. benchmark crude, WTI increased 3.83% to USD 47.98, while Brent crude, the international standard, also rose 0.33% to USD 49.17.

Despite of BREXIT worries, European stocks rallied on Friday. Germany's main index, the DAX, increased 0.85% to 9631.36 along with France's CAC 40, which too rose 0.98% to 4193.83. Britain's FTSE 100 increased 1.19% quoting 6021.09.

Markets in Asia are witnessing a mixed trend during the morning session on Monday. Japan’s Nikkei 225 index has increased by 2.25%. Australia’s S&P/ASX 200 Index has risen by 1.1%; while New Zealand’s S&P/NZX 50 index has increased 0.29%. South Korea’s KOSPI also has increased 1.17%. The Shanghai Composite index has declined by 0.69%. The Hang Seng index too is up 0.62%.

While on domestic front, A SGX Nifty 50 index future for June series is trading down by 45.5 points at 8111. The Indian markets may see a gap down opening.