Markets may begin with modest gains amid positive cues from Asian peers

Indian markets are poised to start the week with modest gains following positive leads from Asian peers. The SGX Nifty indicates Nifty is likely to open around 10,812, up by 18 points. Prominent companies such as Bank of India, Canara Bank, Ceat, Century Textile, Escorts, Godrej Properties, PEL, Shriram Transport Finance, Tata Power will report their earnings today. 
  
Most of the Asian markets are trading in the green on Monday on the back of positive cues from Wall Street last Friday. Also, market participants are looking forward to a new round of US-China trade talks which are most likely to start later this week. The China’s Shanghai Composite index has surged 0.87 per cent and Hong Kong’s index Hang Seng has gained 0.68 per cent, while Japan’s Nikkei 225 index has slipped 0.22 per cent. 
  
Back home, key benchmark indices started the session with a gap-up opening and, thereafter, the indices extended their morning gains. However, in the second half, the indices reversed the trend and witnessed a sharp sell-off amid weak earnings reports. In the end, Nifty shed 0.64 per cent to close at 10,781 and the BSE Sensex closed down 0.47 per cent at 36,025. The broader market tumbled with Nifty Mid-cap and Small-cap losing 1.55 per cent and 1.60 per cent, respectively. Among sectoral indices, barring Nifty IT, all other sectoral indices ended in the red, with Nifty Media tumbling over 16 per cent, followed by Nifty Realty and Nifty Auto. 
  
On Friday, the US stocks made a fabulous start and managed to hold on to their gains through the day on the back of an encouraging batch of corporate earnings and President Donald Trump announcing a short-term deal to reopen the government until February 15. The Dow Jones Industrial Average advanced 0.75 per cent, the S&P 500 Index rose 0.85 per cent and the Nasdaq Composite climbed 1.29 per cent. 
  
Majority of the European markets ended the Friday session on a cheerful note with a rally in the tech and automobile stocks. The DAX of Germany jumped 1.36 per cent and the CAC of France rallied 1.11 per cent, while the FTSE 100 of the UK dipped 0.14 per cent.