Market Likely To Open In Red
Indian equities indices fell for second consecutive day on Tuesday on the back of selling in oil & gas, FMCG, pharma, IT and capital goods stocks. The market was also under pressure ahead of the May F&O expiry on Thursday. The Sensex was down 112.47 points at 27531.41 and the Nifty ended down 30.90 points at 8339.35. The BSE Mid-Cap index fell 1.15 points or 0.01% to settle at 10,609.96. The BSE Small-Cap index shed 17.73 points or 0.16% to settle at 11,165.65. The decline in both these indices was lower than the Sensex's decline in percentage terms.
The Dow Jones Industrial Average has slumped the most in nearly a month as investors eyed renewed strength in the U.S. dollar and mixed data that could strengthen the case for a rate hike. The Dow Jones shed 190.48 points to 18,041.54, the biggest one-day loss for the blue chips since April 30. The Nasdaq Composite Index declined 56.61 points to 5,032.75 and the S&P 500 index fell 21.86 points to 2,104.20.
New home sales for April were higher than expected. Consumer confidence was up. And the latest figures for durable goods orders -- a key indicator of health in manufacturing, topped forecasts too. If the economy is really regaining some steam after a frigid first quarter, the Fed could raise interest rates as early as September.
Crude oil prices have taken the back seat to the dollar. Brent crude fell 2.5% to USD 63.87 a barrel on Tuesday, while WTI declined 2.4% to USD 58.26 a barrel as the dollar strengthened.
Europe markets extended losses on Tuesday, following U.S. stocks downwards, with concerns that Greece is finally about to default on its loan repayments. Euro Stoxx 600 Index closed around 0.9% lower and London's FTSE 100 index closed around 1.2% lower. Germany’s DAX fell 1.6%, while France’s CAC-40 fell 0.66%.
Asian equity markets stumbled early Wednesday, following a decline in U.S. equities, after better-than-estimated economic data bolstered the case for higher interest rates in the world’s largest economy. Japan’s Topix index slipped 0.10% today even after the yen weakened 1.3% to an almost eight-year low against the dollar Tuesday. South Korea’s Kospi index fell 1.8%. Australia’s S&P/ASX 200 Index retreated 0.83% and New Zealand’s NZX 50 Index lost 0.55%. The Hang Seng fall 0.57% and the Shanghai Composite Index trading at flat.
Since SGX Nifty fell 61 points. Indian market is likely to open in red following other Asian markets. It will remain quite volatile, on account of May F&O expiring tomorrow. Aban Offshore , Abbott India , Adlabs Entertainment , Balmer Lawrie & Co , Bata India , Bayer Crop, FDC, Gail (India) , Godrej Industries , Indoco Remedies , JBF Industries , Jindal Steel & Power, Marathon Nextgen Realty, Excel Crop, Max India, Minda Corporation, Redington (India), Repro India, SJVN, Speciality Restaurants, Tata Chemicals, Tata Communications, Tree House Education, Trent and Zicom would be reporting fourth quarter earnings today.