Markets likely to open subdue
After a decent run-up by the bulls, Tuesday morning has not much to offer for the bulls to drive this upmove further, as the sentiments from the Asian peers are subdued. At the time of writing SGX Nifty was down by half a per cent at 10,838. It is important for the bulls to defend the important psychological mark of 10,800.
The Asian stock markets lacked clear direction on Tuesday despite the modest gains on Wall Street overnight. Market participants seem treaded cautiously ahead of the second summit between US President Donald Trump and North Korean leader Kim Jong Un in Hanoi. Barring the China’s Shanghai Composite Index all other indices were trading with caution. The Japan’s Nikkei 225 was hovering just below neutral line and the Hong Kong’s stocks index Hang Seng has slipped 0.25 per cent.
Back home, Monday turned out to be a marvelous session for the key benchmark indices as indices ended around the day’s high. After opening the session on a flat note, indices traded in a capped range in the initial part of the session; however, bulls gained momentum and bother larger peers closed higher by 0.95 per cent (BSE Sensex) and 0.82 per cent (Nifty). The broader indices ended in green as well with Nifty Midcap and Smallcap adding 0.36 and 0.76 per cent, respectively. Talking about sectoral performance, majority of the sectoral indices ended higher with Nifty IT being the top gainer, while Nifty Realty lost 0.73 per cent and ended as top loser.
The US stocks opened sharply higher on Monday fueled by news that additional tariff on goods from China will be postponed and hopes that a trade deal with China may soon be reached. However, as the day progressed stocks trimmed gains and ended the session with modest gains. Going ahead, market participants will keep a watch on Chairman Powell’s congressional testimony on Tuesday along with reports on housing starts and consumer confidence report. The Dow Jones added 0.23 per cent, tech-heavy Nasdaq gained 0.36 per cent and the S&P 500 inched up 0.12 per cent.
The European stock indices ended first trading session of the week on a positive note amid an announcement by US President Donald Trump that he intends to delay the deadline of for additional tariffs on Chinese goods, but gains were tempered as investors were a bit cautious as they look forward to the upcoming US-North Korea meet and the development on the Brexit front. The DAX of Germany rose 0.50 per cent and the CAC 40 advanced 0.36 per cent, the FTSE 100 of the UK ended up 0.06 per cent.