Indian benchmark indices started the new month on a disappointing note, as they showcased an unenthusiastic performance on Monday and settled with moderate cuts of over half a percent amid weak cues from Japan and after disappointing earnings from major corporates. Sentiment was hit by a report that exports of 17 sectors, over half of the 30 sectors including petroleum products, textiles, man-made yarn and fabrics, engineering and leather, closely monitored by the Commerce Ministry were in the negative zone in March due to a fall in global commodity prices amid tepid demand.  However, losses remained capped with the report that growth in India's manufacturing sector slowed sharply in April as demand weakened, reinforcing views that the central bank will have to cut interest rates again in coming months. The Nikkei/Markit Manufacturing Purchasing Managers' Index fell to a four-month low of 50.5 in April from 52.4 of March, nearing the 50 mark that separates growth from contraction and the lowest reading of the year. Some support also came with Standard Chartered's report that India's GDP is likely to grow 7.4% during the current fiscal on the back of increased consumer spending, supported by pay commission awards and lagged impact of a good monsoon. On the global front, Asia markets snapped the first day of the month on a lower note, while the European stocks were marginally in green early trade. Back home, the investors largely remained influenced by the daunting sentiments prevailing in Asian markets. The frontline indices kept losing steam thereafter and even drifted to the lowest point in the session in late morning trades. Afterward, the key indices oscillated in an extremely tight range through the session as market participants remained on the sidelines lacking conviction. Finally, the BSE Sensex declined by 169.65 points or 0.66% to 25436.97, while the CNX Nifty dropped 43.90  points or 0.56% to 7,805.90.

The US market closed higher on Monday, with the Nasdaq Composite snapping a seven-day losing streak after data showed slow-but-steady economic growth unfolding in the US. The construction spending edged up in March thanks to a 1.5% gain in residential construction spending. That offset a 0.4% decline in nonresidential spending. Compared to 12 months ago, construction spending has climbed 8%, with residential construction up 7.6% and nonresidential construction up 8.3%. US manufacturers barely grew in April and there's little sign of a broad pickup in business anytime soon. However, the Institute for Supply Management stated that its manufacturing index fell to 50.8% last month from 51.8% in March. Although readings over 50% indicate more companies are expanding instead of shrinking, manufacturers are clearly struggling to grow. The ISM index has hovered between 48% and 52% since last summer. The Dow Jones Industrial Average added 117.52 points or 0.66 percent to 17,891.164, Nasdaq was up by 42.23 points or 0.88 percent to 4,817.59 while, S&P 500 gained 16.13 points or 0.78 percent to 2,081.43.

Crude oil futures suffered sharp profit taking on Monday, retreating from 2016-yearly highs reached late last week. Traders were concerned with the report that OPEC increased production by 170,000 barrels per day in April from 32.47 million to 32.64 million bpd. Though, the losses were capped with bullish comments from International Energy Agency (IEA) head Faith Birol over the weekend that a spike in global demand could lead to a drawdown in stockpiles, helping bolster crude prices. Benchmark crude oil futures for June delivery plunged by $1.19 or 2.59 percent to $44.74 a barrel after trading in a range of $44.55 and $46.13 a barrel on the New York Mercantile Exchange. In London, Brent crude for June delivery closed at $45.81, down $1.56 or 3.29 percent on the ICE.

Indian rupee ended weaker against dollar on Monday on increased demand for the American currency from importers and banks, amid mixed cues from Asian currency market. Besides, losses in local equities and firm dollar against some currencies overseas also added to the pessimistic environment. The currency after making a weak start lost substantial ground and depreciated amidst lack of positive triggers. Sentiment was hit by a report that exports of 17 sectors, over half of the 30 sectors including petroleum products, textiles, man-made yarn and fabrics, engineering and leather, closely monitored by the Commerce Ministry were in the negative zone in March due to a fall in global commodity prices amid tepid demand. On the global front, euro was higher against the dollar as manufacturing in the currency bloc expanded at a faster pace than initially estimated in April. Finally, the rupee ended at 66.44, 11 paise weaker from its previous close of 66.33, on Friday.

The FIIs as per Monday's data were net sellers in equity segment, while they were net buyers in debt segment. In equity segments both, the gross buying was of Rs 4422.84 crore against gross selling of Rs 4438.93 crore, while in the debt segment, the gross purchase was of Rs 2023.69 crore with gross sales of Rs 1512.55 crore.          

The US markets made slight bounce back in a relatively quiet day of trading in last session, mainly due to bargain hunting. Traders were looking ahead to the release of the Labor Department's closely watched monthly jobs report on Friday. The Asian markets have made a mixed start and while the Japanese market was closed, there was buzz in the Chinese market with manufacturing data coming mostly in line with the estimates. The Indian markets after losing their momentum in the very early trade, remained in a range and witnessed cut of over half a percent in last session. Today, the start is likely to remain cautious tailing the mixed global cues. However, some recovery can be expected in the latter part of trade, with India's infrastructure sectors clocking their highest growth in 16 months in March 2016, with the index for core industries climbing 6.4 per cent, against 5.7 per cent in February. Also, a private report has said that the Indian economy is expected to clock a GDP growth of 7.4 percent this fiscal largely driven by the lagged impact of a good monsoon and increased consumer spending, supported by pay commission award. There will be some buzz in steel and mining sector stocks, as the Rajya Sabha has approved an enabling legislation to make it easier for mergers and acquisitions (M&A) of steel and cement companies reeling in the aftermath of the collapse in global commodity prices. Once the Bill is signed into law, there will be no bar on the transfer of mining leases. There will be some important result announcements too, to keep the markets in action.

Support and Resistance: NSE Nifty and BSE Sensex

Nifty Top volumes

• Tata Power Company has introduced a digital interface by launching a universal Mobile Application for all its stakeholders along with employees and consumers of Mumbai and Delhi.
• Mahindra & Mahindra has reported its auto sales numbers which stood at 41,863 units during April 2016 as against 36,727 units during April 2015, representing a growth of 14%.
• Maruti Suzuki India, country's largest car maker, has registered a rise of 13.3% in its total car sales for the month of April 2016 at 126,569 units, as against 111,748 units in April 2015.
• Reserve Bank of India has allowed foreign investors to buy up to 60% stake in the Yes Bank.
• Bharti Airtel's enterprise arm Airtel Business has partnered with networking player GBI to increase its direct reach in West Asian countries.