Markets likely to make optimistic start

Indian markets are likely to make optimistic start tracking firm leads from global markets. The trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty may open with gains of 45 points around the level of 10,724.  

Asian stock markets are trading firm on Monday tracking firm leads from Wall Street. Japan’s Nikkei 225 has surged 287 points, Hong Kong’s Hang Seng has jumped 368 points and Shanghai Composite has gained 8 points.   

Back home, volatility was the name of the game in Friday’s trading session as Nifty ended lower after having a decent start to the session on the back of encouraging GDP data. The early gains were erased as the realty and banking stocks faced profit-booking. Nifty concluded the session below the important psychological 10,700-mark, down by 0.37% and the BSE Sensex slipped 0.27% to end at 35,227. Profit-booking in the broader market was intense as the Nifty Mid-cap and Small-cap plunged 1.42% and 1.65%, respectively. On the sectoral front, barring Nifty Auto, all other sectors ended in the red with Nifty Realty leading the losers with loss of 1.25%, followed Nifty PSU Bank 1.03%.  

The US stocks exhibited jubilant performance on the last trading session of the week. With the upward move, the tech-heavy Nasdaq reached its best closing level in well over two months. The strength on the Wall Street was seen after the release of a report from the US Labour Department showing better-than-expected job growth for the month of May. The US labour market remains strong with 223,000 new jobs created in May, while the unemployment rate declined to an 18-year low of 3.8% in May, whereas it was expected to remain unchanged. The Dow Jones Industrial Average jumped 219 points to end at 24,635, the Nasdaq Composite spiked 112 points to close at 7,554 and the S&P 500 rose 29 points to finish at 2,735.  

The European markets surged higher on Friday after the news that Italy had managed to form a new government and that Spain will get a new Prime Minister. The DAX of Germany rallied 0.95%, the CAC 40 of France climbed 1.24% and the FTSE 100 of UK finished higher by 0.31%.