Markets are expected to open lower following weak global cues and concerns over unstable political environment. The Nifty futures on the Singapore Exchange were down 34 points, at 5,496.
Analysts expect the markets to remain under pressure as government may hike the diesel and kerosene prices this week which will exacerbate inflation and may prompt the Reserve Bank of India to raise rates again in the upcoming policy on the 9th of June.
Also, there are fresh concerns of policy paralysis in the upcoming parliament session after the latest developments in which the Congress-led United Progressive Alliance (UPA) used brutal force to disperse agitation led by Ramdev Baba, a yoga guru. Analysts said that the government may not be able to push through the long waited reforms.
Markets across Asia were also trading in red followed weak nonfarm par data reported on Friday. Japan’s Nikkei Stock Average was down 0.9%. Singapore’s Straits Times Index dipped 0.4%. Markets in Hong Kong, Shaghai and Seoul were shut for the day on account of holiday.