Market Likely To Open Weak
Indian equities indices hit a roadblock, after three successive weeks of gains, due to muted corporate earnings, growing prospects that Fed Reserve may raise interest rates, lingering Greece fiscal woes and weakening rupee. However, the new expiry (June) has given a good start with expectation on rate cut on 2nd June. On Friday, the Sensex surged 321.73 points or 1.17% at 27,828.44 and the Nifty jumped 114.65 points or 1.38% at 8,433.65. On a weekly basis, the Sensex closed below the 28,000-mark and settled 129 points, or 0.46% down at 27,828, while the Nifty ended at 8,434 down 25 points, or 0.30%. The broader markets, however, outperformed the benchmark indices. The BSE Mid-Cap index rose 96 points or 0.9% to close at 10,716. The BSE Small-Cap index rose 72 points or 0.6% to settle at 11,280.
The Indian economy expanded 7.3% in the year ended March, in line with the initial forecast and marginally higher than 6.9% recorded in the previous year, pointing to a soft recovery and strengthening the case for a rate cut on June 2 when Reserve Bank reviews monetary policy.
U.S. stocks closed lower on Friday after a string of weak economic reports, finishing the week with modest losses. Even Greece’s debt talks prevented US markets from locking in recent record highs. Mix of economic data — strengthening in the housing market, but weaker consumer sentiment and a downturn in business activity in the Chicago area — that failed to show a clear break with the 0.7% economic contraction of the first quarter. The S&P 500 closed 13.40 points, or 0.6%, lower at 2,107.39 and shed 0.9% over the week. The Dow Jones Industrial Average 115.44 points, or 0.6%, to 18,010.68 and ended the week 1.2% lower. The Nasdaq Composite ended the session down 27.95 points, or 0.6%, at 5,032 and posted a 0.4% loss over the week. For the month, the Dow was up 1%, the S&P 500 was up 1.1% and the Nasdaq gained 2.6%.
European stocks slid Friday, with investors wrapping up the week and the month still unclear as to whether Greece will be able to reach a debt deal before a key payment deadline. The Stoxx Europe 600 fell 1.7% to 399.87. The index still logged a 1% gain for May, but notched a weekly loss of 1.9%. On the country indexes, Germany's DAX 30 stumbled 2.3% to 11,413.82, bringing its weekly loss to 3.4%. France's CAC 40 was shoved down 2.5% to 5,007.89, and the U.K.'s FTSE 100 gave up 0.8% to close at 6,984.43 in the daily session.
Asian shares slipped on Monday following trailing losses on Wall Street on Friday. China stocks, however, bucked the regional trend. The Hang Seng and Shanghai bourses opened lower but turned positive in early trading. Earlier, China's official manufacturing PMI came in at 50.2, in line with forecasts, and rose slightly from April's 50.1. The services PMI fell slightly, to 53.2, from 53.4 in April. A little later, the China final HSBC PMI was released in at 49.2, down for the third straight month. Japan’s Topix index slid 0.27%. Australia’s S&P/ASX 200 Index declined 1.32%. South Korea’s Kospi index retreated 0.83%. Markets in Singapore, Thailand and New Zealand are closed for holidays. Hang Seng and the Shanghai Composite Index up 0.25% and 2.2% respectively.
Since SGX Nifty fell 32 points. Indian markets likely to open Weak. RBI policy review on 2nd June and macro-economic data will dictate near term trend on the bourses. Besides, auto stocks would be in focus amid release of monthly sales figures from today.