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Last Updated : Aug 07, 2015 09:15 AM IST | Source: Moneycontrol.com

Gap down opening seen for Nifty on weak global cues

Global markets, meanwhile, are in the red with US stocks closing lower on Thursday, with the Nasdaq off 1.6 percent, as investors weighed declines in oil and disappointing earnings ahead of Friday's key employment report.


The Indian equity market is expected to open with a gap down opening today. The SGX Nifty, an indicator of the market opening, is trading at 8577.50, down 36 points at 7:20. 


The bulls maintained momentum on Dalal Street on Thursday. After a sluggish day, the market geared up to rally at end. The Sensex was up 75.05 points or 0.3 percent at 28298.13 and the Nifty ended up 20.70 points or 0.2 percent at 8588.65.


Global markets, meanwhile, are in the red with US stocks closing lower on Thursday, with the Nasdaq off 1.6 percent, as investors weighed declines in oil and disappointing earnings ahead of Friday's key employment report. Economists expect 223,000 non-farm payrolls on Friday with unemployment unchanged at 5.3 percent, according to a Reuters poll.

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Asian markets, too opened weak, taking the lead from the US markets. The decline in oil prices and disappointing earnings ahead of key employment report today weighed on sentiment. Investors in Asia keep an eye on the Bank of Japan's policy decision.


And in Europe, stocks closed largely lower yesterday, as crude prices hit fresh lows and the Bank of England held its key interest rate unchanged.


In other asset classes, Crude continued to decline with Nymex Crude settling at multi-month lows as a large drop in US crude inventories failed to boost prices. Brent crude was trading below USD 50 per barrel.


The dollar retreated against major currencies in choppy trading in a week that has seen the greenback on a generally firmer trend, as investors balanced their positions ahead of the crucial US nonfarm payrolls report.


And from the precious metals space, gold edged higher, supported by the retreating US dollar and a tumble in global equities as traders awaited US employment data seen as key to determining when the Federal Reserve may raise interest hikes.


Back home, two auto majors are in focus today ahead of their earnings. Tata Motors is expected to post a weak quarter as analysts expect JLR sales to disappoint once again. A tepid set of Q1 numbers are expected from Mahindra and Mahindra as well. Analysts keep an eye on falling volumes in the auto as well as the tractor segment.


And on the macro front, the Finance Minister is not giving up hope on GST and the April 2016 deadline despite the parliament standoff. He said the ball is still in the states' court when it comes to the land bill. 



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First Published on Aug 7, 2015 07:36 am
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