Market Likely To Open Weak
Indian equities indices were consolidating in a narrow range with a negative bias on Tuesday after a sharp rally in previous session. The Sensex declined 50.45 points to 27440.14 and the Nifty slipped 7.15 points to 8324.80 while the BSE Midcap gained 0.6%. The BSE Small-Cap index rose 8.52 points or 0.08% to settle at 11,178.17. Both these indices outperformed the Sensex.
The ministry of finance has cut export duty on iron ore (for 58% fe grade and below) from 30% to 10% from June 1, 2015. Tata Steel and Vedanta have gained nearly 5% each. Therefore BSE Metal closed up 2.86% at 10236.64.
U.S. stocks fell on Tuesday, erasing all the gains from the previous two sessions as U.S. stocks closed sharply lower. Crude oil climbed above USD 60 a barrel for the first time this year as the U.S. trade deficit jumped to a 6-year high, sparking concern about economic growth. The S&P 500 closed 25.03 points, or 1.2%, lower at 2,089.46, with losses across the board, while the Dow Jones Industrial Average tumbled 142.20 points, or 0.8%, to 17,928.20. The Nasdaq Composite, which has been a market leader in recent months, lost 77.60 points, or 1.55%, to 4939.33. Similarly, the small-cap benchmark Russell 2000 index, which had been outpacing the broader market, fell 1.4%.
The USD 51.4 billion March deficit was the highest in nearly 6-1/2 years and larger than the USD 45.2 billion the government assumed in its snapshot of first-quarter gross domestic product last week, suggesting the economy had contracted.
WTI crude oil futures for June delivery settled at USD 60.40 a barrel, the highest since December, on the New York Mercantile Exchange. Brent crude rose USD 1.07 to USD 67.52 in London. Gold futures settled up USD 6.40 at USD 1,193.20 an ounce.
European stocks moved sharply lower on Tuesday on fears of an early end to the ECB's QE stimulus programme and a spike in tensions over the Greek crisis. The Stoxx Europe 600 closed 1.5% lower. Germany’s DAX 30 index fell 2.5% to 11,327.68, while France’s CAC 40 index ended 2.1% lower at 4,974.07, the first close below 5,000 since March 12. London's benchmark FTSE 100 index shed 0.84% at 6,927.58 points, with less than 48 hours to go until Britons head to the polls on Thursday.
Chinese equities outperformed the region on the back of robust data from its services sector, while other Asian bourses were on the back foot following an unimpressive lead from Wall Street. China's Shanghai Composite index elevated 0.9% amid choppy trade, probably boosted by data that showed activity in the services sector growing at its fastest pace this year. The Hang Seng index reversed a lower open to bump up 0.7%, moving away from a one-and-a-half-week intra-day low. Australia's S&P ASX 200 index tanks 1.7% and currently trading at more than 7-week low. Markets in Japan remain closed for the Constitution Day.
China HSBC services PMI rose to a four-month high of 52.9 in April, slightly higher than March's 52.3 and comfortably above the 50-point level that separates expansion from contraction.
SGX Nifty is trading lower by 38 points. Indian market is likely to open weak. GIC Housing Finance, Greaves Cotton, KEC International, Phillips Carbon Black and Phillips Carbon Black would be reporting fourth quarter earnings today.