Market seen opening weak on subdued global cues

The market is likely to open lower on weak global cues on disappointing US jobs data and sustained worries about the euro zone debt crisis. Trading of S&P CNX Nifty on the Singapore stock exchange indicates a slide of 79 points at the opening bell.

Foreign institutional investors (FIIs) bought shares worth a Rs 1158.38 crore on Friday, 2 September 2011, as per provisional data from the stock exchanges. Domestic institutional investors (DIIs) sold shares worth Rs 346.28 crore on that day.



Food inflation firmed up to 10.05% in the week ended 20 August 2011, the highest in nearly six months from 9.80% rise in the previous week. Meanwhile the finance minister Pranab Mukherjee described this as “really disturbing” and raised the possibility of yet another 0.5% rate hike by Reserve Bank of India in the coming weeks.

Exports surged 81.79% to $29.3 billion while imports jumped 51.5% to $40.4 billion in July 2011 over July 2010, leaving a trade deficit of $11 billion, data released on Thursday showed.

Indian economy expanded 7.7% in Q1 June 2011 from a year earlier, helped by strong growth in the services sector. The manufacturing sector grew an annual 7.2% in Q1 June 2011, while farm output rose an annual 3.9%, the data showed. The strong Q1 June 2011 GDP growth data is likely to prompt the Reserve Bank of India to continue raising interest rates when it undertakes mid-quarter policy review on 16 September 2011 to restrain inflation, which remains well above the central bank's perceived comfort level of 5% to 6%.

Asian shares edged lower on Monday as disappointing US jobs data stoked US recession fears. The key benchmark indices in Hong Kong, Taiwan, Japan, South Korea, Singapore and China were down by between 1.58% to 3.02%. Indonesia's Jakarta Composite rose 1.34%.

Stocks on Wall Street and other major exchanges closed down more than 2% on Friday, 2 September 2011 after the US Labor Department said employers added no net new jobs last month and July's total was revised lower.