Pressure at start!

In the game of life it's a good idea to have a few early losses, which relives you of the pressure of trying to maintain an undefeated season. - Lee Trevino.

Just when it looked like the Indian market was getting into a groove comes yet another shocker from the offshore markets. Indian equities will face selling pressure early on, tracking Friday’s big fall on Wall Street. US stocks sank after the government’s jobs report re-ignited fears of double-dip recession.



European markets did even worse amid fresh worries over Greece’s financial bailout. Most Asian markets are in the red, underpinned by the dismal US jobs data. Oil futures are down while the dollar is up. Gold continues to attract safe haven buying.

But, Indian markets can take heart from the recent turnaround in FIIs flows. Monsoon has been good over the past couple of weeks. But, inflation remains stubbornly high. This could probably prompting the RBI to go for at least one more hike on Sept. 16.

Interest rate decisions are due from a slew of central banks this week. Markets will also react to Chinese data on Friday.

US markets are shut on Monday on account of the Labour Day.

FIIs were net buyers of Rs 11.58bn in the cash segment on Friday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net sellers at Rs 3.46bn on the same day. FIIs were net buyers of Rs 18.40bn (provisional) in the F&O segment.

The foreign funds were net buyers of Rs 6.78bn in the cash segment on Tuesday, as per SEBI data. Mutual Funds were net buyers at Rs 2.66bn on the same day.

Global Data Watch: Services PMI data for major global economies, Eurozone retail sales and UK retail sales.