Indian Market Likely To Open Lower
After a Indian equities rising for the sixth day in a row, the Sensex today ended with a loss of 46 points and Nifty inched 17 points down on profit-selling in bluechips like HDFC, Infosys and Airtel amid weak global cues. After making a firm opening, benchmark indices are trading marginally lower, however buying among auto and capital goods shares has capped the downslide. Both frontline indices failed to hold the psychological levels - 8400 on Nifty and 28000 on Sensex. The BSE Sensex declined 45.58 points to 27842.32 and the Nifty fell 17.05 points to 8378.40 after hitting intraday highs of 28064.49 and 8445.60, respectively. The broader markets outperformed frontline indices with the BSE Midcap and Smallcap indices closing flat with positive bias.
Globally, the US stock markets fell sharply on yesterday, as plunging oil prices worried investors. The Dow Jones fell 331.34 points (1.86%), to close at 17,501.65. The S&P 500 index shed 37.62 points (1.83%), to 2,020.58, and the Nasdaq slipped 74.24 points (1.57%) to 4,652.57. Oil in New York traded as low as USD 49.95 per barrel for the first time since April 2009, before closing at USD 50.04, down USD 2.65. In June of last year it traded for USD 107 a barrel. Brent crude, a benchmark for international oils used by many U.S. refineries, fell USD 3.31 (5.9%), to close at USD 53.11 a barrel in London.
Worries about Greece’s ability to stay in the eurozone have reasserted themselves in recent days, for instance. The dollar continued its surge against the euro on Monday. The euro was trading at USD 1.1939 after falling to a five-year low of USD 1.1862.
European stocks markets also plunged on the first Monday of 2015, on fears about implications of oil slump coupled with political uncertainty in Greece. Greece’s Athex composite closed 5.6% lower, taking losses over the last three months to almost 25% and making it the worst-performing index across the region. Germany’s DAX and France’s CAC lost 3% and 3.3%, respectively, while Italy’s MIB dropped 4.9% and Spain’s IBEX 3.5%. The FTSE 100 also closed 2% lower at 6417.
Asian Stocks market also open in red in the morning Today, after stocks on Wall Street declined overnight following the relentless fall in oil prices. Japan's Nikkei plunges 2.4% to a near three-week low early Tuesday. The Hang Seng index opened down 0.9% to a one-week low.
SGX Nifty is trading in red with 60 points lower to 8,356. Markets are expected to consolidate gains this week ahead of December quarter earnings season that will kick off with Infosys on Friday. Today, Indian market is expected to open in negative on back of negative global cues.