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Nifty likely to open in green; Asian equities bounce back

Power Breakfast

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The Nifty is likely top open in the green, with indicator SGX Nifty trading at 8349.50, up 20 points at 8:00 AM. On Thursday, the market was in a consolidation mood, with the 50-share NSE Nifty closing below the 8300-mark, weighed down by oil & gas, technology and select banks stocks.

The index declined 62.75 points to 8292.90 and the 30-share BSE Sensex shed 229.09 points to 27602.01 amid volatility. The broader markets saw selling pressure too; the BSE Midcap and Smallcap indices were down over 0.6 percent.

Asian equity markets made gains early Friday, as a positive lead from Wall Street overnight offset concerns about a further decline in oil prices.

Japan’s Nikkei 225 started Friday on a strong note, after three consecutive losing sessions, on the back of the yen which weakened to 119 against the greenback. Japanese shares sagged to a two-week low in the previous session as a stronger currency and a downbeat machinery data curbed risk appetite.

China’s benchmark Shanghai Composite index and Hong Kong’s Hang Seng index opened 0.8 and 0.4 percent higher, respectively.

Australia’s benchmark S&P ASX 200 fell back into negative territory two hours into trade as banking majors extended the week’s losses.

While South Korean shares headed higher on the last trading session of the week after the benchmark Kospi index finished at a five-week low on Thursday.

In the US, stocks advanced, cutting weekly losses, but euphoria over increased retail sales in November faded as oil fell to another five-year low and renewed worries of a government shutdown. Crude dropped below USD 60 a barrel.

In Europe, shares close mixed even as data showed that the uptake of a low-rate loan programme by the ECB met market expectations. The loans have been less than the ECB originally hoped for when the scheme was first announced.

Central banks outside the ECB were also in focus. The Swiss central bank kept policy on hold but Norway’s bank decided to cut interest rates in a surprise move. The central bank of Russia raised its key interest rate by 1 percent.

In the currency space, the dollar was firmer against most of its major peers thanks to upbeat the US retail sales data, while nervousness over falling oil prices kept the Canadian dollar pinned near a five-year low.

In commodities, crude slide continues, Nymex crude falls below USD 60 a barrel, the first time in five years that it breached the psychologically-important support level, as oil markets extended this week’s losses on oversupply concerns. Brent too slips below USD 64.

From the precious metals space, gold prices remained flat, retreating from seven-week high as the dollar extended gains.

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