Markets may open negative tracking global cues

Indian markets reported their third straight upbeat with Sensex and Nifty making fresh 52 week highs. The momentum was driven by Banking and Finance stocks amid continued foreign inflows. However, markets witnessed correction in the afternoon session ahead of release of macro numbers like GDP, fiscal deficit and core sector data.

European markets ended lower with fall in oil prices after a report posted a rise in inventories by 2.3 million barrels in the week. Meanwhile Euro zone inflation and unemployment numbers remained unchanged at 0.2 per cent in August and 10.1 per cent in July respectively. DAX tumbled 0.6%, and the CAC-40 declined 0.43%. FTSE 100 too dropped 0.58 per cent.

US markets saw their second consecutive retreat with the fall in oil prices and ahead of US non-farm payroll report. Dow Jones, S&P500 and Nasdaq declined 0.29, 0.24 and 0.19 per cent respectively.
 
Asian markets opened mostly lower tracking weak US markets but have witnessed recovery where Nikkei 225 is trading with 0.13 per cent gains and Hang Seng is marginally up with 0.24 per cent gains. China’s Manufacturing PMI has risen to exact 50.4 in August as against estimates of 49.9; and services PMI stands at 53.5 in August as against 53.9 in July, but is well above the expansion minimum limit of 50. Shanghai composite is seen down with 0.23 per cent losses. Australia’s S&P/ASX 200 is 0.29 per cent down; while New Zealand’s S&P/NZX 50 is 0.29 per cent down. South Korea’s KOSPI is 0.37 per cent down.
 
Indian markets' Q1 GDP has slowed down to 7.1 per cent, hitting its lowest rate in six quarters. The eight infrastructure industries have seen a growth of 3.2 per cent as against 5.2 per cent in June. On the contrary the fiscal deficit has reached 74 per cent of the full year's target to nearly 3.93 lakh crores.
 
Indian markets may open on a flat to negative note and may see some more correction tracking weak global cues. Markets may remain reactive to the macroeconomic numbers. SGX Nifty is trading flat to negative at 8837 levels.