Markets to Open in Red Taking Cues from Global Markets

The domestic markets continued its rising streak on second trading session after Union Budget. The NSE Nifty tested the 9000 levels during the trading session. The Nifty touched 9008 intraday high during the trading session, however could not sustain the levels and settled down at 8996 which is record closing high. Interestingly the mid and small cap stocks outperformed the large cap companies yesterday. The mid and small cap indices on BSE closed 1.18 and 1.39 per cent higher.

The European stocks fell after satisfactory economic data and investors were taking some profit from the market which was trading at record highs. In early morning, the stocks were trading higher on the data firm Markit’s final February reading of manufacturing activity data for the euro zone confirmed modest growth, with the purchasing manufacturer’s index holding steady at 51.0. Germany too released retail sales data showing improvement in Europe’s largest economy. The Spain’s jobless claims too unexpectedly fell sharply in the month of February.

However, the market did not cheered the good economic data and took some profit booking later in the day. The French stock market index CAC 40 closed lower by 0.98 per cent at 4869. The German stock market index DAX slipped by 1.14 per cent t 11280 during the yesterday’s trading session. The UK FTSE closed at 6889, down by 0.74 per cent.

The US markets had too seen taking some profits from the record high levels on yesterday. The disappointing car sales number took markets further in red. The investors worried ahead of the jobs report after disappointing car sales numbers. The Nasdaq closed at 4980, down by 0.56 per cent. The S&P 500 and Dow industrials closed at 2108 and 18203, down by 0.45 and 0.47 per cent respectively.

Today morning, the Japanese markets have too seen taking some profits from the equity markets after taking negative cues from the US markets. The Nikkei 225 was trading at 18630, down by 0.98 per cent. the Australian markets were too trading down over disappointments from the central bank. The Australian central bank kept policy rate unchanged. The ASX 200 was too trading down by 0.43 per cent at 5909. The Hong Kong stocks were too trading lower on concerns over the Chinese securities regulator’s approvals of 24 initial public offerings might drain liquidity from markets. The Hang Seng index was trading down by 0.74 per cent at 24703.

In the morning, the SGX Nifty was too trading lower by 20 odd points at 9032. We too expect the domestic markets too see some profit booking taking negative cues from global markets and the markets may open lower in the morning.