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Nifty likely to open in red following weak global cues

Globally, Asian stocks have kickstarted the week on the back foot, tracking sharp declines on Wall Street, as investors fretted about the relentless slide in oil prices and declining manufacturing sentiment in Japan.

December 15, 2014 / 08:34 AM IST

The Indian equity market is expected to start the week on a negative note on the back of weak global cues and poor macro data. The SGX Nifty was trading at 8224.50, down 48.50 points at 7:30am.


Globally, Asian stocks have kickstarted the week on the back foot, tracking sharp declines on Wall Street, as investors fretted about the relentless slide in oil prices and declining manufacturing sentiment in Japan.


The Dow and S&P ended Friday’s session down over a percent and a half each. The Nasdaq also lost over a percent.European stock markets too closed sharply lower on Friday, posting their biggest weekly loss since august 2011, as commodity prices continued to fall and shares in oil-related firms came under renewed pressure from the weak price for crude.


In other asset classes, the dollar cut its losses against the euro, extending gains against the yen and reached an 11-year high against the Norwegian crown on plunging oil prices


Brent crude futures fell as much as 2.5 percent to a new five-year low near USD 60 a barrel after the International Energy Agency forecasted further price falls and OPEC's chief defended the group's decision not to cut its output target. And gold held steady at around USD 1220 an ounce following a firm dollar.

Back home, Indian growth engines are sputtering with factory output shrinking by 4.2 percent, the worst fall in 3 years. But inflation continues to slow down with the CPI hitting 4.38 percent in November.

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Furthermore, India’s largest IT firm TCS has raised the red flag saying the company’s third quarter revenues will be hit due to seasonal impact and slackening of momentum. Meanwhile, key brokerages have pruned estimates stating soft demand commentary comes as a negative surprise.

And the decks have been cleared for the upcoming coal block auctions as the Lok Sabha has passed the Coal Mines Act--- the law has a provision to enable commercial mining of coal.

first published: Dec 15, 2014 07:36 am

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