Flat start in offing!

Early trends of SGX Nifty suggests a flat to positive start as it is up by 16 points trading at 9,037. But will markets be able to sustain their early gains or would it again be a day with positive start and then giving up their gains is the big question. We believe that the latter might hold true for the day, as market participants are concerned about the mounting tensions between the US and China. This came after the reports indicating that this week, US President Donald Trump is on the verge to take measures against China over its attempt to impose national security laws on Hong Kong.  On the downside, Nifty has a crucial support between the range of 8,970-9,000. So, watch out for these levels as Nifty moving below these levels could further take it towards 8800 mark.

On the earnings front, today over 20 companies including key stocks like Dabur, Sun Pharma and United Spirits are slated to report their earnings for quarter ended March 2020.

On Wednesday, despite strong leads from Wall Street overnight, Asian indices were trading in red. The main reason for this seems to be the war of words between the US and China. Hong Kong’s Hang Seng and China’s Shanghai Composite were down by 0.65 per cent and 0.13 per cent respectively. While, Japan’s Nikkei 225 has lost 0.09 per cent.  

Asian Markets

On Tuesday, domestic markets opened the session with a gap-up and it repeated the same old story as once again it failed to sustain their opening gains and ended the day with modest losses. At closing bell, Nifty dropped by 0.11 per cent to settle at 9,029 and Sensex dipped 0.21 per cent to settle at 30,609. Meanwhile, the broader market indices outperformed the frontline indices with Nifty mid-cap and Nifty small-cap surging 1.32 per cent and 0.76 per cent respectively. The advance-decline ratio was inclined towards advancers. On sectoral front, Nifty Metal, Nifty Auto, Nifty FMCG and Nifty Realty were top gainers. On the other hand, selling pressure was witnessed in Nifty IT, Nifty Pharma and Nifty Media.

As new home sales surprisingly ticked higher, US stocks posted a spectacular rally on Tuesday. The S&P 500 moved to its important psychological level of 3,000 for the first time since the first week of March. The Dow spent majority of the time above the 25,000 mark, but at the end indices trimmed some of its gains. At closing bell, Dow surged 2.2 per cent, S&P 500 advanced 1.2 per cent and the tech-heavy Nasdaq jumped 0.2 per cent.  On Tuesday, amid optimism about economic recovery as several countries are relaxing lockdown restrictions, the European indices extended their up-move.

US Markets

Europe Markets

Commodity