Markets are likely to open on a negative note this morning, owing to mixed cues from the Asian peers. The SGX Nifty is down 42 points at 5,486
Major Asian indices have slipped in morning trades with Nikkei and Hang Seng down half a per cent each. Shanghai Composite has slumped 1.7% to 2,656. Seoul and Taiwan markets are down over 1.5% each.
In US, a weak manufacturing report erased all the early gains of the market. Stocks rose in early trades on hopes of a resolution to the debt standoff. The Dow ended down 11 points at 12,132. Nasdaq was down 12 points at 2,744. The Standard & Poor's Index fell 0.4%, to 1,286.94 and the Nasdaq Composite Index lost 0.4%, to 2,744.
The markets may see some sliggishness as Investment bank Morgan Stanley has cut India’s growth estimates to 7.2% for the current financial year (2011-12) from 7.7% earlier. The downward revision of the gross domestic product (GDP) growth forecast has been done on account of rising cost of funds due to inflation, creeping sluggishness in investments and consumption expenditure and government spending.
Also, the prime minister’s economic advisory council (PMEAC) on Monday lowered its economic growth projection for this financial year to 8.2 per cent, from 9 per cent pegged earlier.
“The projected growth rate of 8.2 per cent, though lower than the previous year (8.5 per cent), must be treated as high and respectable, given the current world situation,” PMEAC chairman C Rangarajan said. According to the council, the global economic and financial condition is unlikely to improve, which will not allow India to sustain the high growth in exports witnessed in the first quarter.
The results expected for the day are DLF, MMTC, Oracle Finance, Piramal Healthcare, Power Grid, United Breweries and Whirlpool.