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Nifty may open in red due to weak Asian cues, Paris attack

Nifty is likely to open in red due to weakness in Asian markets and the recent terrorist attack in Paris. Last week, the Nifty failed to defend its 7,800 level and even, the Sensex shed 250 points.

Nifty was trading at 7,735 level, down 25 points at 7:35 AM today.

In the week gone by, government announced its decision to set up a divestment commission to advise on strategic stake sale in public sector units and outright sale of sick public sector units.

On the earnings front, Coal India missed estimates due to lower e-auction realisations. The company’s net sales rose 8.2 percent to Rs 16,957 crore and profit grew 16 percent to Rs 2,543 crore.

Asian markets are trading with a percent cut today. The recent Paris attacks sparked a sell-off in the Asian markets.

Japan slides into recession as the economy contracted 0.8 percent on an annualized basis in the July to September quarter. Drop in capital spending and weakening external demand across Asia are key reasons for weak data.

In US, stocks closed more than a percent lower on Friday, pressured by a continued decline in oil prices and soft reports on the health of the consumer. The major indices ended the week down more than 3.5 percent. Underperformance in Apple weighed on the Nasdaq.

The October retail sales showed an increase of 0.1 percent, below expectations of a 0.3 percent rise.

In Europe, equities closed sharply lower last week as slumping commodity prices and weak earnings reports continued to weigh on investor sentiment.

All eyes will be on the G-20 summit in Turkey where the heads of countries like US, China, Japan and Russia will meet to discuss recent terrorist attacks. French president Francoise Hollande pulled out of the summit, declaring the first nation-wide state of emergency in France since 1961.

In currency, the dollar moved higher against major currencies as US consumer sentiment beat forecasts, gaining for the second straight month.

The crude fell over 2 percent on Friday, extending the week’s loss to the largest in eight months, pressured by swelling storage of crude.

Gold prices continue to trade below USD 1100 an ounce.

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