Markets likely to open flat tracking mixed cues from Asian peers

The Indian markets are expected to open on a flattish note following mixed cues from Asian peers. The Nifty 50 index futures on the Singapore stock exchange are currently trading with modest gains of 17 points at 10,765.  

The stock markets in Asia are trading mixed on Monday as, after a fairly heated G7 debate, investors are now focusing on the landmark one-on-one meeting between Donald Trump and Kim Jong Un of North Korea. Japan’s Nikkei 225 and Hong Kong’s Hang Seng indices have gained 0.30% and 0.25%, respectively, while the Shanghai Composite of China has lost 0.33%.  

Back home, after opening the session on a pessimistic note, key benchmark indices staged a smart recovery in the last leg of trading to end almost flat on the last trading session of the week. The Nifty settled almost unchanged at 10,768 and the BSE Sensex lost 19 points to end at 35,444. In the broader markets, buying interest remained strong for the third day in a row. The Nifty Mid-cap and Small-cap indices rose 0.51% and 0.91%, respectively. On the sectoral front, Nifty Pharma had a dream run as it surged 4.26% and ended as a top gainer for the day, followed by Nifty PSU Bank which gained 1.66%. However, Nifty FMCG ended down by 0.52% and ended as the top loser of the day.  

On Friday, the major US indices shook off some morning selling pressure and advanced modestly into positive territory.  The Dow and the S&P 500 reached their best closing levels in about three months. The Dow Jones Industrial Average rose 75 points to close at 25,317, the S&P 500 added 9 points to finish at 2,779 and Nasdaq Composite Index gained 10 points to end at 7,646. The trading activity during the day was relatively quiet as G-7 leaders gathered in Canada for a two-day summit which focused on issues relating to international trade.   

Majority of European bourses closed in the red terrain on Friday as market participants were in a tense mood as tensions flared between the US and its allies ahead of the G7 meeting in Canada. The DAX of Germany shed 0.35%, but the CAC 40 of France added 0.03% and the FTSE 100 declined 0.30%.