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Nifty likely to open in red over weak macros global cues

US markets ended lower on Friday ahead of the US Federal Reserve’s meeting and the Scottish Independence referendum.

The News International TeamThe Indian equity market may open the trading week on a weak note as suggested by SGX Nifty that was trading at 8081 down 51 points.

The market saw consolidation and managed to close above 8100 last week with a strength seen in broader markets pointing towards an upper hands for the bulls. However, it may react negatively to the macros that were released on Friday post market hours.

In what came as a double whammy for the economy, retail inflation slowed only marginally coming in at 7.8 percent for August thanks to a spike in food prices. Growth too is crawling with the industrial production in July growing by a mere 0.5 percent.

What may pull the Nifty lower today is the US market’s ending lower on Friday as investors turned cautious ahead of the Federal Reserve meeting that will start on Tuesday and the Scottish referendum on Thursday.

Asian markets are in the red over weak Chinese data- August industrial output rose 6.9 percent on year, its slowest pace since 2008, while fixed-asset investment and retail sales both missed forecasts. However, overall trading volumes are light with Japan being closed for a holiday. er the weekend, china released a raft of data that raised concerns about a weakening economy.

The European markets ended the week on a mixed note with the British FTSE and the French CAC ending just barely in the green. The German DAX was down about half a percent.

In other asset classes, the big news continues to be the slide of Brent Crude prices. Brent has now slipped below the USD 97 dollars per barrel mark pressured by a strong dollar, weak demand and ample supplies. The oil is its weakest in two years.

The dollar, meanwhile, is flat against the yen, near a six-year peak. The euro is also steady at 1.29 to the dollar.

However, no relief seems to be in place for gold either in the commodity space. It has dropped to fresh eight-month lows on fears that the Fed may signal an early interest rate hike at this week’s policy meeting, while the strength in the dollar and weak physical demand also weighed on bullion.

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