Market likely to open gap-down tracking negative global cues

Indian benchmarks indices are expected to open gap-down in line with global stock markets. The traders across the world are nervous over a trade spat between the top two economies of the world. Nifty 50 index futures on the Singapore stock exchange is currently trading lower by 63 points at 10,728.  

Major Asian markets are trading deep in the red on Tuesday after media reports suggest US President Donald Trump threatened more tariffs on Chinese products, if China follows through with its promise of retaliating against the US tariffs announced last week. Hong Kong’s Hang Seng has slumped 2.19%, China’s Shanghai Composite has dropped 1.70% and Japan’s Nikkei 225 has fallen 0.93%. 

Back home, key benchmarks indices traded in a tight range throughout the day and ended the choppy session below their crucial 35,600 (Sensex) and 10,800 (Nifty) levels on Monday. The broader indices ended in the red with the Nifty Mid-cap and Small-cap indices shedding 0.35% and 0.82%, respectively. On the sectoral front, most of the sectors ended the day in the red, while Nifty Auto, Nifty Pvt Bank and Nifty Pharma ended with minuscule gains. 

The US stocks mostly closed lower on Monday, with the Dow closing in the red for the fifth consecutive session. The Dow Jones Industrial Average fell 103 points to close at 24,987 and the S&P 500 lost 6 points to finish at 2,774, while the tech-heavy Nasdaq Composite managed to close just above the neutral line at 7,747. On the US economic front, the National Association of Home Builders monthly confidence index dipped to 68 in June from 70 in May. Economists had expected the index to come in unchanged.  

The European markets took a blow on Monday as market sentiments were dominated by concerns over a trade war between the US and China. The DAX of Germany dropped 1.36%, the CAC 40 of France plunged 0.93% and the FTSE 100 shed 0.03%.