Markets may open flat to negative tracking negative cues from Asian peers

Indian stock markets are likely to open on a flat to negative note tracking weak global cues and negative start from the Asian peers. The trading of Nifty 50 index future on the Singapore stock exchange is trailing flat indicates that Nifty could open flat at the opening bell. We have plenty of earnings on the plate today, including ACC, Delta Corp, Granules, Hindustan Zinc, Hindustan Oil Exploration, etc.  

Asian stock market indices witnessed a weak opening on Monday in the wake of the US dollar depreciating to its lowest in more than two weeks against major currencies. Donald Trump has shown disapproval of Fed’s policy decisions and has indicated more protectionist measures by threatening to impose tariffs on all imports from China, dragging down investors' sentiments in Europe and US on Friday which has been carried forward to the Asian peers. Japan’s Nikkei 225 has shed 1.22 per cent, Hong Kong’s Hang Seng index has dipped 0.1 per cent and China’s Shanghai Composite has lost 0.5 per cent at 7:14 hours IST.  

Talking of the domestic markets, the benchmark indices settled on a positive note, which was initiated at the beginning of the Friday’s session. The Congress and other opposition parties tried hard to muster support for the no-confidence motion during the monsoon session of the parliament. However, being short of numbers, the opposition parties knew the outcome beforehand, but utilised the occasion to put the BJP in the dock. Predictably, the motion fell flat on the floor of the house. The NSE Nifty reclaimed the 11000-mark and gained 53 points to close at 11010 and the BSE Sensex rose 145 points to end at 36,496. The broader markets too remained positive with the Small-cap index closing in line with the benchmarks with 0.4 per cent gains while Mid-cap outperforming with 0.7 per cent gains. Barring the Auto, Media and Metal indices, which closed 0.4 per cent down each, all other sectors closed in the green with Pharma, Realty and IT indices gaining 1 per cent and more each.

The US stocks ended Friday’s session on a flat to negative note after striving to break higher throughout the week, despite corporate earnings volatility and reproaches from Trump on Federal Reserve’s tightening policies, coupled with China and EU manipulating rates and currencies. The Dow closed almost flat shedding just 6 points at 25,058, the S&P 500 fell 3 points to finish at 2,801 and the Nasdaq dropped 5 points to end at 7,820.  

Majority of European stock markets too ended provisionally lower reacting to Trump’s comments on tariffs and Fed. The auto sector reacted the most and was the worst performer after the European Commission warned retaliatory tariffs in case Trump moves ahead with imposition of tariffs on European automakers. The banking stocks too remained under pressure, dragging the major indices to close in the negative terrain. The DAX of Germany lost almost 1 0.62 per cent, CAC 40 of France decreased by 0.35 per cent, while UK’s FTSE 100 closed almost flat, shedding just 5 points.