Markets may begin on an upbeat note tracking positive cues from Asian peers

The set-up is perfect and the Monday morning promises a smiling start for the markets with positive cues from the Asian peers and arrival of rains in many parts of the country over the weekend. It gives bulls a firm pitch to bat on.  In the early action, SGX Nifty was trading higher by 57 points at 11,954 levels.

Asian stocks are trading mostly positive on the first trading session of the week following strong leads from the Wall Street. Also, market participants heaved a sigh of relief after the US President Donald Trump announced that tariffs would not be slapped on Mexican goods. The Japanese stock index Nikkei 225 has surged 1.15 per cent, South Korea’s Kospi has gained 0.63 per cent and Hong Kong’s Hang Seng is up 0.82 per cent.

Back home, the final trading session of the week was a volatile day as key equity benchmarks ended the session with marginal gains. After starting the session with modest gains, key equity benchmarks witnessed a tough battle between the bulls and the bears throughout the day. Finally, the BSE Sensex and Nifty settled above their crucial psychological levels of 39,600 and 11,850, respectively. The broader indices underperformed the frontline gauges with Nifty Midcap and Smallcap slipping 0.21 per cent and 0.03 per cent, respectively. A mixed trend was seen on the sectoral front with Nifty Pharma and Nifty Metal losing the most, while Nifty Financial Services and Nifty Bank ending as top gainers.

The US stocks began Friday’s session on a solid note and the upbeat mood was maintained throughout the session as this stocks registered four days of solid gains. The optimism on the Wall Street was seen as the softer-than-expected May jobs report could prompt the Federal Reserve to cut interest rates in the near future. At the closing bell, the Dow Jones Industrial Average jumped one per cent, the Nasdaq composite skyrocketed 1.7 per cent and the S&P 500 index soared 1.1 per cent.

The European indices moved higher on Friday. Germany’s benchmark DAX and France’s CAC 40 index gained 0.77 per cent and 1.62 per cent, respectively, while UK’s FTSE 100 moved up 0.99 per cent.