Flat start likely amid listless cues from Asian peers

The outlook for the day is a flat start as in early action SGX Nifty was seen trading with a modest gain of 18 points at 11,960 level. Also, the Asian markets lacked enthusiasm as traders were reluctant to take any significant position after the comments by the US President Donald Trump over China. Technically for the Nifty, a major barrier is seen around the zone of 11,980-12,000. A decisive move above this zone will open up gates for the bulls towards the all-time high levels.

The Asian markets were seen trading flat on Tuesday after a recent comment by the US President Donald Trump indicating more tariffs on China, if the Chinese President Xi Jinping does not attend a planned meeting at the G-20 summit later this month. The Japanese stock index Nikkei 225 has added 0.36 per cent and Hong Kong’s Hang Seng has risen 0.36 per cent.

Back home, key benchmark indices ended Monday’s session with modest gains amid high volatility. Markets started off the session on a positive note and extended their opening gains. However, as the day progressed, the markets pared majority of their early gains and turned volatile. Nifty and BSE Sensex ended the session with gains of 0.44 per cent and 0.43 per cent, respectively. The broader indices exhibited mixed trend with Nifty Midcap adding 0.05 per cent, while Nifty Smallcap losing 0.52 per cent. Talking about the sectoral performance, Nifty IT and Nifty FMCG emerged as the top gainers, while Nifty Media and Nifty PSU Bank ended as top losers.

The US stocks continued to move northward, registering a fifth straight session of gains on Monday after the the US decided not to impose tariffs on Mexico, which were supposed to kick in on Monday. The tech-heavy Nasdaq outperformed its counterparts jumping by 1.1 per cent, while the Dow added 0.3 per cent and the S&P 500 advanced 0.5 per cent and reached its best closing levels in a month.   

The European stocks ended Monday’s session on a positive note. France’s CAC 40 index surged 0.3 per cent and UK’s FTSE 100 rose 0.4 per cent. However, the volumes were lighter than usual with markets in Germany and Switzerland remaining closed for holiday.