Markets may mark another volatile session on Tuesday

The SGX Nifty in early action is looking wary suggesting that traders need to brace for another volatile session as weakness has gripped the stock markets across the globe. The oil prices will continue to be a major overhang for the Indian markets as it has an adverse impact on Indian economy. Going ahead, market participants will keep an eye out for geo-political developments in Middle East as any further escalations could take oil prices even higher and it would be harmful for the Indian markets and economy. At the time of writing, the SGX Nifty was down by 17 points at 10,988 mark.

In early deals on Tuesday, majority of the Asian markets were seen under pressure following a negative close on Wall Street overnight. In Japan, the benchmark Nikkei 225 was down 0.11 per cent, the Hong Kong’s Hang Seng has declined 0.93 per cent and the China’s Shanghai Composite has lost 0.76 per cent.

Back home, Monday blues came back to haunt the benchmark stock indices as the Sensex and the Nifty opened with significant losses following sharp spike in the oil prices after a devastating attack on Saudi Arabia’s oil assets. But, indices were resilience to the weakness, and at one point of the time, they had managed to recover bulk of its losses. However, volatility increased again in the second half of trading session and the benchmark indices closed negative with a net loss of 0.70 per cent (Sensex) and 0.65 per cent (Nifty), respectively.  The broader markets outperformed the benchmark, with Nifty Midcap restricting its losses to 0.15 per cent, while Nifty Smallcap ended flat with mild gains. The sectoral indices witnessed mixed trend. Nifty FMCG and Nifty Pharma ended with decent gains, while sectors like Nifty PSU Bank and Nifty Realty were top losers.

The US markets began the first trading session of the week on a negative note amid heightened geopolitical concerns after a Saudi Arabian oil facility was attacked over the weekend, which resulted in a sharp jump in the crude oil prices. At the end of the session, The Dow snapped its 8-day winning streak and closed lower by 143 points, the S&P 500 was down by 9 points and the tech-heavy Nasdaq slipped 23 points. Going ahead, all eyes and ears will be on US Federal Reserve as its starts its two-day policy meeting on 17th September.

The European stock markets also ended Monday’s session with losses as market participants pressed the sell button amid rising geopolitical tensions in the Middle East post the drone attack on Saudi oil facilities. The Germany’s DAX dropped 0.71 per cent, the France’s CAC 40 lost 0.94 per cent and the UK’s FTSE 100 declined 0.63 per cent.