Nifty likely to open in red on weak global cues

The Indian equity market is likely to open lower on weak global cues. The SGX Nifty, an indicator of the market opening, was trading at 8353, down 63 points at 7.53 am.

Equity benchmarks snapped six-day winning streak on Monday due to profit booking. Both frontline indices failed to hold the psychological levels (8400 on Nifty and 28000 on Sensex).

Even the Asian markets have opened sharply lower on the back of weak overnight cues following relentless fall in oil prices. Nikkei has opened down to a near three-week low as trading sentiment was hit by a double whammy of declining oil prices and a stronger yen. All Asian indices are down more than a percent each.

The US stocks declined sharply, with the S&P 500 extending losses into a fourth session, as energy companies took it on the chin as oil fell to its lowest since April 2009. The CBOE volatility index rose 12 percent to 19.92.

Even the European shares have closed sharply lower as concerns over the health of the eurozone resurfaced like the political uncertainty in Greece that weighed on markets.

In the currency space, the euro hovers near a nine-year trough as the prospect of more policy easing from the European Central Bank grew ever stronger. Constant chatter of a Greek exit from the eurozone further sapped confidence in the currency.In commodities, Nymex crude dropped over 5 percent to USD 50 a barrel, while Brent crude tumbled towards USD 53 after data showed Russian oil output at post-Soviet era highs and Iraqi oil exports at near 35-year peaks.

From precious metals space, gold prices rose to above USD 1200 an ounce following weak equities and eurozone concerns.