Indian Markets
The Indian market has taken a severe beating in early morning trade, with the BSE Sensex tumbling over 300 points and the NSE Nifty sliding under the 4900 mark.
The undercurrent has been dampened by a combination of domestic cum global factors ahead of a crucial announcement from EU leaders at a Summit in Brussels later today.
While food inflation has come off sharply in the past one month and the RBI has signaled a pause in its aggressive monetary tightening, the Government's fiscal profligacy and a weakening rupee have dimmed the prospects for the Indian economy. Add to that the ongoing political tussle between the Government and the Opposition parties on a series of issues, ranging from inflation, to corruption, to black money and economic reform measures.
US and European Markets
U.S. stocks slipped on Thursday as anxiety was high ahead of a crucial summit aimed at resolving the European debt crisis.
Dow Jones ended the day down 199 points, or 1.6%. S&P 500 closed with a 27 point drop, or 2.1%. Nasdaq slid 53 points, or 2%. The S&P and Nasdaq dropped back into negative territory for the year.
European stocks closed lower. Britain's FTSE 100 fell 1.1%, DAX in Germany lost 2.0% and France's CAC 40 moved down 2.5%.
Asian Markets
Today, all the Asian indices are trading in the red except Shanghai, which is marginally in the green. Nikkei is trading lower by 1.5% while Hang Seng, Taiwan and Kospi are down 1.4% each. Strait Times is down by 0.7%. Japan's Nikkei average dropped on Friday after global shares slumped as steps from the European Central Bank disappointed some investors. As of IST 8.27 am, SGX Nifty is trading lower today by 62 points.
Currencies
The Indian rupee reversed most early losses on Thursday helped by dollar sales by some state-run banks and corporates, but losses in local shares and a weak euro limited the rise.
Commodities
Among the metals, Nickel rose by 0.3% while Aluminium lost 1.9%. Copper and Zinc fell by 0.2% each. Oil for December delivery fell $2.48 to $98.01 a barrel. Gold futures for February delivery dropped $31.80 to $1,713.00 an ounce.
Key events to watch for today
Germany CPI data
UK PPI data
US Money Supply and Fed Balance Sheet
Outlook for Today
Today, we expect the Indian Markets to open in the negative following weak global cues and disappointment from the ECB meeting yesterday. The markets could be nervous ahead of the EU summit today.
Sources- hdfcsec, rh morning market
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