Global cues weak; deeper red hues likely on Nifty

It was carnage on Dalal Street yesterday with all equity benchmark indices ending at its lowest level in 2015. The weakness is likely to continue today as well with SGX Nifty trading down 20 points at 8090.50 points.

Most market experts also expect the correction to conitnue in the near-term due to FII outflows.The Sensex crashed over 700 points, the Nifty fell 2.7% closing below 8100. Midcaps reeled under the selling pressure and all sectors ended negative with the Bank Nifty cracking 4%. On the earnings front today expect a second straight quarter of disappointment in earnings from Hero MotoCorp. A CNBC-TV18 poll indicates an 18 percent profit growth due to discontinuation of royalty payments to Honda but margins expected to fall 140 bps year on year.Asian markets too have opened up lower on the back of a weaker finish on Wall Street overnight and growth worries in Australia. Nikkei opened at one-month lows as heavies like Sony and SoftBank are under pressure. Kospi has opened at three-and-a-half-week lows...Additionally there are fresh concerns that Reserve Bank of Australia is putting a stop to its easing cycle despite faltering economic growth. Also Malaysia’s central bank meets later in the day and will unveil its monthly rate decisionUS markets closed lower as investors weigh higher bond yields and oil prices ahead of Friday’s important jobs report. Also comments from Fed Chair Janet Yellen that the equities market is overvalued added to the market anxiety. Asia too is negative in morning tradeHowever, in Europe equities closed mostly higher as investors reacted to a slew of earnings reports and new economic data.On the data front, a final composite PMI for the euro zone came in above expectations. The April figure rose to 53.9 above a flash estimate of 53.5.

All eyes will be on the UK elections. Polling will kick off today, the incumbent Prime Minister David Cameron and Ed Miliband, the leader of the opposition Labour Party, are level in most polls, showing that another coalition government is a highly probable outcome of the election.In other asset classes, crude prices pared gains as investors took profits on a multi-week rally but continue to trade near 2015 highs. NYMEX crude is around USD 60 per barrel.In currencies, the dollar hit its lowest level against the euro since late February yesterday after a rise in European yields drove demand for the euro.From the precious metal space, gold prices edged lower as the impact of higher US real yields counteracted the effects of a weaker dollar.Other stocks that could be in news today are the new F&O entrants like Castrol, Ceat, Amara Raja Batteries, Bajaj Finance. PNB, IDBI would also be in news on back of a base rate cuts announced by them.