Flat start with a positive bias likely despite negative global cues

The outlook for the day is a flat start with positive bias as the cues from global markets are mostly negative. The SGX Nifty, suggest that Nifty could open up by 20 points around levels of 11,564.  
  
On the last trading session of the week, markets in Asia are seen trading mixed following the weakness in the tech stocks that pressurised the Wall Street overnight and as global trade uncertainty lingered as the US could impose further tariffs on China. Japan’s benchmark Nikkei 225 index has lost 0.96 per cent, whereas China’s Shanghai Composite has jumped 1.32 per cent and Hong Kong’s Hang Seng has risen 0.43 per cent.   
  
Back home, key benchmark indices ended Thursday’s session on the green terrain with frontline indices reclaiming the 11,500 (Nifty) and 38,200 (Sensex) levels. After a gap-up opening, markets pared all of their gains as Indian rupee touched a fresh record low of 72 against the US dollar. However, a V-shaped recovery was seen from lower levels due to strong movement in some of the heavyweights such as Reliance Industries and Kotak Mahindra Bank. Buying interest was seen in the broader indices as well, with the Nifty Mid-cap and Small-cap indices gaining 0.42 per cent and 0.63 per cent, respectively. Among sectoral indices, the top gaining indices on the NSE were Nifty Pharma and Nifty Realty, while Nifty Media lost 1.60 per cent.  

The Nasdaq and the S&P 500 finished lower for a third session on Thursday, while the Dow ended above the neutral line. From a sectoral perspective, energy and technology stocks weighed heavily on the market. A slew of economic data was released on Thursday, with the service sector growth accelerating more than expected but the ADP employment report missing the expectations. On the trade front, the US and Canadian officials continue to hold talks on reforming NAFTA. Going ahead, traders will keep a close watch on monthly job reports as market participants will get a hint about the Federal Reserve’s next course of action. The Dow Jones Industrial Average added 21 points to close at 25,996, while the Nasdaq tumbled 72 points to finish at 7,923 and the S&P lost 11 points to end the day at 2,878.  
  
The European indices extended their fall on Thursday as global sentiments remained edgy amid potential new US tariffs on China and turbulence in emerging markets. The DAX of Germany ended lower by 0.71 per cent, the CAC 40 of France decreased 0.31 per cent and the UK’s FTSE 100 fell 0.87 per cent. Economic data in the region showed German factory orders had dropped unexpectedly on foreign demand in July amid trade disputes with the US.