Market May Continue To Remain Under Pressure

Indian equities indices posted their third-biggest fall of the year on IMD’s lowering monsoon forecast for this year and RBI taking a cautious stance on the economic recovery even as it cut policy rates by 25 basis points. Market experts feel developments in monsoon, inflation, June quarter earnings and crude oil will decide near term trend. The Sensex fell 660.61 points to 27188.38 and the Nifty plunged 196.95 points to 8236.45. Midcap and small cap shares too took a beating, falling more than 2%.

US stocks edged down on Tuesday while the dollar fell and bond yields rose as investors sought clarity on Greece’s debt crisis and awaited the US jobs report. The S&P 500 closed 2.13 points, or 0.1%, lower at 2,109.60. The Dow Jones Industrial Average lost 28.43 points, or 0.2%, to 18,011.94. The Nasdaq Composite finished the day down 6.40 points, or 0.1%, to 5,076.52.

WTI crude was up USD 1.06 at USD 61.27 a barrel on the New York Mercantile Exchange. Brent crude oils gained 86 cents to USD 65.74 a barrel in London.

European equities downward after a senior EU official complained of slow progress in talks to avoid of Greek debt default. Germany's DAX shed 0.9% while France's CAC 40 was down 0.4%. Britain's FTSE 100 fell 0.4%. The broader Stoxx 600 index, which tracks a broad basket of European stocks, was down 0.7%.

Most Asian stocks fell as Japanese shares slid on a stronger yen and investors awaited the outcome of talks between Greece and its creditors. Japan's Nikkei lost 0.42% while Australia’s S&P/ASX 200 Index fell 0.1%, as did New Zealand’s NZX 50 Index. South Korea’s Kospi index added 0.3%. The Shanghai Composite Index recouped early losses to edge up 0.5%. Since SGX Nifty fell 18 points. Indian markets likely to open with under pressure.