D-Street likely to open on a weak note

Today Indian markets are likely to have a weak start, due to mixed cues from Asian peers. At 7:55 am, SGX Nifty was trading down by 58.50 points at 9,846.50 levels.  In the last couple of trading sessions, markets have been experiencing high volatility and even today’s session is expected to be volatile. Market participant will keenly watch the border situation, as the Chinese impasse has the potential to spook the markets in a big way.

On Wednesday, despite Wall Street registering a strong close overnight, mixed trend was seen in Asian markets. The recent post by Chief Economist of IMF cited that the forthcoming June World Economic Outlook update is likely to show negative growth rates. It seems to be even worse than previous estimates. Further, Japan’s export plunged at a sharp pace since the 2009. The Japan’s Nikkei is leading the fall.

Asian Markets

On Tuesday, before settling with gains of over one per cent, the domestic stock markets experienced wild swings making volatility a buzzword on the D-Street. At the opening bell, markets witnessed a gap-up start on the back of positive global cues making bulls jump with joy. But soon the gains started to taper off, as in the afternoon session a sudden stint of selling pressure was witnessed due to Indo-China border tension. However, post the initial knee jerk reaction to the news of geopolitical concerns, markets recovered from the lower levels. Broader markets showed a mixed performance with Nifty Mid-cap adding 0.44 per cent, whereas Nifty Small-cap drowned 0.11 per cent. On the sectoral front, Nifty Financial Services and Nifty Bank were the top gainers and, on the flipside, Nifty PSU Bank and Nifty Realty were the top losers. Overall market breadth was negative, as 1,032 stocks declined while 835 advanced.

US stocks extended their gains for a third consecutive day on Tuesday. As it is said when it rains, it pours the sentiment on the Wall Street. It got a lift from number of fronts. Firstly, the reports emerged that in a fight against the coronavirus, a low-dose steroid treatment dexamethasone is a major breakthrough. Secondly, retail sales for the month of May soared at staggering 17.7 per cent on MoM basis. Finally, reports indicated that to aid recovery, US President Donald Trump is considering a new $1 trillion infrastructure bill.  At close, all the three major indices ended with strong gains with Dow leading the way.  European indices too finished the session with healthy gains aided by a slew of global economic data.

US Markets

Europe Markets

Commodity