SGX Nifty indicates weak opening on back of weak global indices

Moneycontrol BureauSGX Nifty indicates a weak opening for the market. Key indices fell about five percent last week. SGX Nifty was trading at 7560 level, down 44 points. Key event to watch out for on Monday is the expected verdict on ‘odd-even’ scheme in the capital. State government has indicated a drop in pollution level and might ask for an extension for the scheme. Despite a slight upliftment in the Chinese market, Asian markets remained cautious and US market closed about a percent lower. In Asia, China's consumer price index rose 1.6 percent in December from a year earlier, which followed a gain of 1.5 percent in November. The producer price index fell 5.9 percent for a fifth straight month, compared with economists' estimate for a 5.8 percent. Julia Wang, China economist at HSBC expects a 50 basis points (bps) policy rate cut and 400 bps reserve ratio cuts this year from China.On Wall Street, strong jobs data lifted the sentiment. However, markets pared their opening gains as oil dropped to a 12-year low. Stocks finished in negative on the Friday. The German Dax too was down 8.3 percent for the week, suffering its worst weekly loss since the week ending august 19, 2011 when it lost 8.63 percent.On commodity front, crude slid below USD 33 per barrel last week, its lowest since 2004 on concerns over China and global glut.Gold continued to trade above USD 1100 an ounce.