Markets may begin on a subdued note tracking negative cues from Asian peers

After witnessing high volatility in the second half of the trading session on the eve of June month expiry, Indian markets are expected to kick-off July series on a tepid note following mostly negative cues from the Asian peers. The Asian markets are a little jittery ahead of the G-20 summit in Osaka, Japan, as any failure to arrive at an accord would literally mean the end of the road for trade talks.

On the domestic front, a host of macroeconomic data announcements are lined up for today and traders will keep a watch on this as well. The government will release May fiscal deficit data and infrastructure output today. At the time of writing, SGX Nifty was marginally up by 15 points at 11,907 level.

Most of the Asian markets are trading in the red terrain on Friday ahead of the G-20 summit in Japan. The Japanese stock index Nikkei 225 has slipped 0.52 per cent, Hong Kong’s Hang Seng has dropped 0.57 per cent and the Kospi has dipped 0.31 per cent.   

Back home, it turned out to be a topsy-turvy Thursday. After opening the session on a positive note, the indices gradually inched higher in the first half. However, in the second half of the session, volatile swings were seen due to June series F&O expiry. In the end indices erased the entire gains to close just below the dotted lines. Nifty closed at 11,842 and the BSE Sensex settled at 39,586. The broader market indices ended the session in the green, thereby outperforming the frontline gauges. Nifty Midcap and Smallcap gained 0.42 per cent and 0.08 per cent, respectively. Among the sectoral indices, a mixed trend was seen with Nifty Realty and Nifty Auto emerging top gains, while on the flip side, Nifty IT and Nifty Metal being the top losers. 

A majority of the US indices eked out gains on Thursday with tech-heavy Nasdaq leading the charge as it surged 0.7 per cent and the S&P rose 0.4 per cent, while the Dow ended the session with a modest loss, weighed down by a steep drop in the stock price of Boeing. Going ahead, market participants will keenly eye the outcome of the meeting between President Donald Trump and China President Xi as this could set the further course of action for the markets. On economic data front, weekly initial jobless claims rose more than expected, while the pending home sales index surged.

The European equities were mixed on Thursday with Eurozone economic confidence for June slipping more than expected, while German consumer price inflation witnessed an unexpected acceleration. France’s CAC 40 index and UK’s FTSE 100 dipped 0.13 per cent and 0.19 per cent, respectively. while Germany’s DAX advanced 0.21 per cent.