Markets may open flat amid mixed cues from Asian peers

Today is the settlement day for the May series. The SGX Nifty is trading marginally in the positive terrain, however, the global markets were weak on the back of concerns over the trade war. Also, the US yield curve has inverted the most since 2007 and this is likely to remain an overhang on the domestic markets as well. Moreover, given the settlement of the May derivative series, we expect volatility to be the hallmark in today’s session. Prime Minister Narendra Modi will take oath today along with a new council of ministers. Market participants will be eager to know who will be the Finance Minister after Arun Jaitley's exit for health reasons. At the time of writing, SGX Nifty was trading at 11,875, up by 11 points. On the earnings front, a host of companies will announce their earnings today, including Apollo Hospital, Coal India, HDIL, IDBI Bank, NALCO and SAIL.

The Asian markets are trading mixed on Thursday morning following the US stocks closing lower for the second straight session overnight. The Japanese stock index Nikkei 225 has slipped 0.51 per cent.  In South Korea, the KOSPI added 0.47 per cent and Hong Kong’s Hang Seng was up by 0.18 per cent.

Back home, key equity benchmark indices ended Wednesday’s session on a weak note and snapped their three-day rally. The markets opened the session on a flat note with a negative bias and, thereafter, they traded with negative tone throughout the session. Selling pressure intensified post the noon session and the benchmark indices ended the session with a cut of over half a per cent. The broader indices ended the session in the red as well, with Nifty Midcap and Smallcap ending with losses of 0.77 per cent and 0.67 per cent, respectively. Talking about the sectoral performance, barring Nifty IT, all other sectoral indices witnessed selling pressure, with Nifty PSU Bank and Nifty Metal ending as top losers.

The US equity markets posted a second straight day of losses on Wednesday amid worries that the ongoing trade dispute between world’s largest economies is likely to escalate into a full-fledged trade war. Also, the US has seen its yield curve inverted the most since 2007 and that has typically been a forewarning of a recession in the US. The Dow Jones Industrial Average tumbled 0.9 per cent, the Nasdaq composite dropped 0.8 and the S&P 500 Index lost 0.7 per cent.

European stock markets ended the Wednesday’s session firmly in the negative terrain. Germany’s benchmark DAX plunged 1.57 per cent, France’s CAC 40 index slumped 1.7 per cent and UK’s FTSE 100 declined 1.15 per cent.