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Indian Shares Seen Lower On Global Cues

Indian shares are seen opening lower on Monday, mirroring weak Asian cues as weaker-than-expected U.S. jobs data revived doubts about the pace of recovery in the world's largest economy. Also, data released today showed an unexpected spike in Chinese inflation in March, dampening hopes for monetary easing.

The U.S. Labor Department reported on Friday that employment saw continued growth in March, although the pace of job growth came in well below estimates. Non-farm payroll employment increased by 120,000 jobs in March following an upwardly revised increase of 240,000 jobs in February. Economists had expected the addition of about 201,000 jobs compared to the increase of 227,000 jobs that had been reported for the previous month.

Having said that, there would be some respite for Indian equities, as crude oil futures fell more than $1 a barrel in early Asian trading on concerns about softer fuel demand.

If oil extends its recent declines, that would strengthen the case for an interest-rate cut to counter slower economic growth. The Reserve Bank of India's (RBI) annual monetary policy review for fiscal 2013 is due on April 17. Before that, industrial output data due on April 12th, WPI data scheduled to be released on 13th and Infosys' results will likely influence trading sentiment.

Major European and U.S. markets were closed on Friday for Good Friday. U.S. stocks ended mixed on Thursday, with the tech-Nasdaq gaining 0.4 percent, while the Dow and the S&P 500 dropped marginally, as a weak Spanish bond auction inflamed concerns about the European debt crisis.

by RTTNews Staff Writer

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