Equities to open lower on US economic worries

MUMBAI: Equities are expected to open lower Monday tracking global cues. Just when the indices were set for new highs, the unexpected fall in US job data, which raised concerns of a recession in the economy, will hurt sentiment.

Friday, the Labor Department in Washington said that employers cut 4,000 workers from payrolls in August, compared with a gain of 68,000 in July, while economists had forecast 110,000 jobs were created. The news plunged US indices down nearly 2 per cent. Asian stocks too tumbled Monday on US economic fears.

Back home, the market will remain nervous for the next seven days of trade till September 18, when US Federal Reserve is expected to announce a rate cut, which will set the course for the market direction.

Friday, National Stock Exchange’s Nifty closed down 9 points or 0.2 per cent at 4509.5. The index touched a high of 4547.75 and low of 4499.9 intra-day. Bombay Stock Exchange’s Sensex ended down 26 points or 0.17 per cent at 15,590.42, making a high of 15,716.06 and low of 15,565.22.

Foreign institutional investors were net buyers of equity worth Rs 384.68 crore Friday, while domestic institutional investors net sold equity worth Rs 99.43 crore.