Markets may begin on a subdued note amid lacklustre global cues

The early trend in the SGX Nifty is indicating a dull start for the Indian markets. Also, the cues from the global peers are subdued as traders seem reluctant to make significant moves as they await Federal Reserve Chairman’s speech at the Jackson Hole Economic Policy Symposium for additional hints about the coming monetary policy. At the time of writing, SGX Nifty was down by 7 points at 11,712 level.

The Asian markets are trading directionless on the final trading session of the week. The Japanese stock index Nikkei 225 and Hong Kong’s Hang Seng are trading with modest gains of 0.22 per cent and 0.30 per cent, while China’s Shanghai Composite index is flat.

Back home, Thursday turned out to be a terrible day for the benchmark indices as the indices took a severe beating and ended the day below their crucial psychological levels of 10,750 (Nifty) and 36,500 (Sensex). The benchmark indices started off the session on a sluggish note and remained under pressure throughout the session. In the second half, selling pressure intensified and, as a result, markets closed sharply lower. In the broader market, Nifty Midcap and Smallcap plunged 1.9 per cent and 2.8 per cent, respectively. Sectorally, all the sectors ended in the red, except Nifty IT which posted marginal gain of 0.35 per cent, while Nifty Realty plummeted about 6 per cent followed by Nifty PSU Bank and Nifty Metal.

On Thursday, the US markets were rather directionless and ended the session on a mixed note amid a slew of economic data. Also, the hopes of September rate cut were tempered as some Fed members indicated that a September rate cut is not a certainty. The Dow rose 0.2 per cent, while the S&P 500 and the tech-heavy Nasdaq dipped 0.1 per cent and 0.4 per cent. Going ahead, market participant’s eyes will be on the US Federal Reserve Chairman Powell's speech at the bank’s symposium.

The European equities ended Thursday’s session on a negative note, weighed down by mixed eurozone economic data and ambiguity of interest rate cuts in the US. Germany’s DAX and France’s CAC 40 dropped 0.87 per cent and 0.47 per cent, respectively, and UK’s FTSE 100 slid 1.05 per cent.