Market may open sharply lower on weak global cues

Indian equities are likely to open negative on Wednesday, May.5, 2010. SGX Nifty is trading at 5,054.5. (7.44 am), 76.50 points lower than Tuesday closing of 5,131.

Asian stocks declined, extending a global rout, as concern grew that Europe`s government debt crisis will spread beyond Greece. Hong Kong`s Hang Seng index declined by 372.93 points, or 1.80%, at. 20,390.12.

US stocks plunged around the world Tuesday as fears spread that Europe`s attempt to contain Greece`s debt crisis would fail. The euro fell to its lowest point against the dollar in a year. The Dow fell 225.06 points, or 2.02%, to 10,926.77.

Among Indian ADRs, Dr Reddy`S Laboratories (1.1%), Tata Communications (3.54%), Infosys Technologies (3.56%), MTNL (3.74%), Satyam Computer (4.1%),were major loser.

European stocks plunged, amid concern that Greece`s debt crisis will spread through the region. UK`s benchmark index FTSE 100 declined 142.18 points, or 2.56%, to end at 5,411.11.

Oil prices tumbled below USD 83 a barrel Tuesday on a stronger dollar and a falling stock market as investors worried about the ongoing European financial crisis. After setting an 18-month high during trading Monday, benchmark crude for June delivery fell USD 3.45, or 4%, to settle at USD 82.74 on the New York Mercantile Exchange.

In the spot market, the Dollar Index increased 0.319% to 83.56. It touched a high of 83.65 and a low of 83.39 after opening at 83.48. (22:01 ET)