Indian markets are expected to open lower tracking weak global cues after disappointing US jobs data. The Nifty futures on the Singapore Exchange declined 80 points, at 4,966.
On Friday, markets in the United States slumped 2% after data from Labor Department showed zero jobs growth in August, raising concerns that the US economy was still fragile.
In Asia, Nikkei dropped 1.7% at 8,797, Hang Seng slipped over 2%, Seoul Composite, Taiwan Weighted and Straits Times were down over 2% each. Financial and exporter shares were leading the losses.
Commenting on the status-quo back home, Amar Ambani, Head of Research, IIFL -India private clients said, "The monsoon has picked up pace in the past few days but food inflation has crossed 10%, which is a cause for concern. The Reserve Bank of India is likely to hike the policy rates by another 25 bps on Sept. 16. The crucial thing for the markets would be to see if the RBI signals an end to its tightening cycle or not."
The Indian markets advanced over 6% last week. According to analysts, some amount of profit booking may come in as the pullback rally may be a bit overdone. Ashish Chaturmohta from IIFL Private Wealth said, "The Nifty future has an immediate resistance at 5120 levels, sustaining above, which further short covering can be seen. On the downside, 4,970 holds as an important support, if breached can test 4920-4880 levels."
On the global front, the European Central Bank meeting on interest rates, due on Thursday, will also be closely watched.