Market Likely To Open Positive
Indian equities indices end marginally lower on yesterday as ITC shares tanked on worries related to proposed ban on sale of loose cigarettes while metal stocks tracked weak global cues. The Sensex closed 0.29%, or 78.91 points, lower at 27,346.82 points, while the Nifty fell 0.26%, or 21.85 points, to end at 8,277.55 points. The BSE Mid-Cap and Small-Cap index decline by 0.2% and 0.45% respectively. India’s wholesale price inflation rose to 0.11% in December as compared with zero in November.
Global commodity prices, copper in particular, slumped to fresh six-year lows on worries over global economic recovery. The NYMEX Copper futures dropped nearly 6% to USD 2.490, while the LME spot copper prices tanked 5.8% to USD 2.5373. Among other metals - Zinc, Nickel and Lead tumbled 3-4% each, and Aluminium shed 1% on the LME.
The U.S. stock market extended its losses for a fourth straight session Wednesday following a weak reading on holiday retail sales and a global sell-off on renewed fears over slowing economic growth. The S&P 500 index fell 11.76 points (0.6%) to 2,011.27 which is heading for its third straight week of losses. The Nasdaq composite fell 22.18 points (0.5%) to 4,639.32 and the Dow Jones industrial average dropped 186.59 points (1.1%) to 17,427.09. Retail sales fell 0.9% last month after a 0.4% increase in November, the largest decline in 11 months, the Commerce Department said Wednesday.
Europe's leading stock markets fell sharply on yesterday as deflation worries swept across the region, while tumbling global commodity markets continued. The World Bank cut its global growth projection and after unexpectedly weak data on retail sales from the U.S. The Stoxx Europe 600 dropped 1.5% to 339.67. The U.K. FTSE 100 UKX which is heavily weighted by commodity-related shares slid 2.4% to 6,388.46. In Frankfurt, the DAX 30 fell 1.3% to 9,817.08. In Paris, the CAC 40 fell 1.6% to 4,223.24.
ECB meet to decide on QE, Grexit on 25th Jan and later FED rate assessment. Only post these outcomes can we expect where global market is likely to move.
Asian stock markets open with mixed note. Japanese stocks rose for the first time in three days, driven by after oil prices rebounded late in U.S. trading. China’s benchmark stock index swung between gains and losses as power companies advanced on prospects for price reform, while copper producers slumped. The Topix rose 1.0% to 1,371 and the Nikkei 225 Stock Average added 1.36% to 17,024. The Shanghai Composite and the Hang Seng Index currently trading at flat.
SGX Nifty is trading in negative and down by 37 points. Today, Indian market is expected to open Positive due to surprisingly RBI cutting interest rates by 25 bps before RBI policy meet.