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Morning cues: Nifty likely to open flat

The Indian market is expected to open flat on Monday after an extended weekend, with the SGX Nifty trading 1.50 points down. A late rally on Wednesday helped the Sensex rally over 300 points and the Nifty hit the 8,500 mark again.

The Indian market is expected to open flat on Monday after an extended weekend, with the SGX Nifty trading 1.50 points down. A late rally on Wednesday helped the Sensex rally over 300 points and the Nifty hit the 8,500 mark again.

The Asian markets are trading mostly lower following the absence of a lead from the US markets. Even the closely-watched US non-farm payrolls figure came in far below expectations — the US economy created just 126,000 jobs in March as opposed to expectations of an addition of 245,000, sending US stock futures and the dollar in a spin.

The report is the worst jobs print since December 2013 and is accompanied by a downward revision in February and January job numbers as well. The unemployment rate for March however, has held steady at 5.5 percent. According to economists, the bleak report is a result of bad weather and weak consumer spending. This is the first time in 14 months that the non-farm payrolls number has fallen below 200,000.

In the currency space, the dollar dropped, after dismal US jobs report pushed up US Treasury yields as investors pared bets the Federal Reserve would hike interest rates anytime soon. The yield on benchmark 10-year Treasury notes, which moves inversely to prices, hit nearly two-month lows of 1.8 percent on Friday.

In commodities, crude prices are steady in trade today post dropping 4 percent on Thursday. This is after global powers negotiated a deal with Iran and announced that they have reached solutions on key parameters of the country’s nuclear program.

From precious metals space, gold prices are firm above 1200 dollars an ounce.

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