Markets are expected to open lower on back of rising crude prices, political instability and subdued cues from Asia. The Nifty futures on the Singapore Exchange fell 68 points, at 5480.
Crude continued its uptrend on concerns that crisis in Libya would spread to the oil producing neighbours. The crude futures on the New York Mercantile Exchange surged to $105/bbl in the morning session.
Markets may remain jittery due to political instability after six ministers from Dravida Munnetra Kazagham (DMK), a key ally to the congress said that they will meet the Prime Minister today and hand over their resignation letters. The congress which is already beset by corruption charges will face another set back if it loses its key ally DMK.
Markets in Asia were trading mixed, Hong Kong market was choppy in the morning session, energy shares were leading the gains, while airline and property shares were trading in the red. Hang Seng Index was down 0.3%. Japan's Nikkei 225 Average was down 1.1% due to losses in exporter shares and blue chip stocks. Also, Seoul Composite and Taiwan Weighted were down 0.6% and 0.3%. On the other hand China's Shanghai Composite and Singapore's Strait Times bucked trend, were up 1% and 0.3% each.
According to the technical charts, markets are indicisive. PINC Research in its weekly note said, "in the near term the trend is therefore likely to remain indecisive. From an overall perspective the Nifty can be considered positive as long as it stays above 5400. " The note added, "the markets may trade sideways for some time with high volatility. It is a wait and watch situation as the index is not gaining any directional thrust as yet."
