Markets likely to open with modest gains following positive global cues

Today, the start of the August series F&O expiry session is likely to be positive; however, we may see lot of volatility as the session progresses as traders balance their positions to the new series. The SGX Nifty suggests that Nifty could open with an uptick of 17 points the around level of 11,720. 
  
Majority of the markets in Asia were seen trading with modest uptick on Thursday following positive leads from the Wall Street. Japan’s benchmark Nikkei 225 index has gained 0.15 per cent and China’s Shanghai Composite has risen 0.02 per cent, while Hong Kong’s Hang Seng has slipped 0.40 per cent.  
  
Back home, Indian equity benchmarks snapped their two-day winning streak on account of sell-off in the last leg of trading. Meanwhile, the rupee hit a record low against the US dollar, moving closer to the 70.50-mark. In the end, Nifty lost 47 points to close below 11,700 level and BSE Sensex dipped 174 points to close below the 38,800-mark. The broader markets fared better with Nifty Mid-cap and Small-cap gaining 0.55 per cent and 0.10 per cent, respectively. The top gaining sectoral indices on the NSE were Nifty PSU Bank, Nifty Realty and Nifty Metal, while Nifty Pharma and Nifty Media were top losers on the NSE.  
  
Overnight, the US equity markets continued their northward movement on Wednesday, with the S&P 500 and the Nasdaq climbing to new record closing highs, while the Dow reached its best closing level in nearly seven months amid trade optimism with the US and Canada beginning NAFTA talks on the heels of an agreement reached between the US and Mexico earlier in the week. At the close of trading, the Dow Jones Industrial Average ended higher by 61 points to finish at 26,125; the S&P 500 index increased 17 points to close at 2,914, and the tech-laden Nasdaq Composite Index jumped 80 points to end at 8,110. On the US economic front, according to the second estimate, the nation’s GDP expanded at an annualised rate of 4.2 per cent during the June quarter, which was a bit stronger than what had been anticipated. Meanwhile, pending home sales declined 0.7 per cent month-over-month in July, after jumping by 1 per cent over the upwardly revised figures in June. 
  
Most of the European markets ended Wednesday’s session on the positive terrain as investors continued to monitor global trade developments. The UK’s FTSE 100 was under pressure; aggravated by a decisive jump in the British pound amid the European Union’s (EU) chief and Brexit negotiator said the EU was prepared to offer Britain a trade deal unlike any it has offered another country, per media reports. The UK’s FTSE 100 declined 0.71 per cent, while the DAX of Germany rose 0.27 per cent and the CAC 40 of France added 0.30 per cent.