Markets may open lower amid negative global cues
The outlook for the day for the domestic markets is lower opening. There could be jitters regarding the waning prospects of a deal between the world’s two largest economies, i.e. US and China, after US President Donald Trump blamed China of violating on past commitments just as trade negotiations were set to resume on Tuesday. At the time of writing, the SGX Nifty was down by 44 points at 11,053 level. The results scheduled today are Ashok Leyland, Apollo Tyre, CONCOR, IOC, Tata Global and UPL. Also, traders will keenly watch infrastructure output for the month of June.
The Asian markets are seen under selling pressure on Wednesday morning as US President Donald Trump warned China waiting out his first term to finalise any trade deal. Trump has made his point clear that trade negotiation would have to make meaningful development during the upcoming trade negotiations or there could be no deal at all as per the reports. The Japanese stock index Nikkei 225 has dropped 0.98 per cent, Hong Kong’s Hang Seng has plummeted 1.44 per cent and China’s Shanghai Composite index has fallen 0.70 per cent.
Back home, key benchmark indices started off the session on a positive note and finally the bulls heaved a sigh of relief after seeing opening gains being extended. However, by mid-day, the tables had turned and heavy selling was witnessed in index pivotals such as Reliance Industries and SBI which led to the fall. In the end, Nifty dropped 0.93 per cent below the 11,100 mark and BSE Sensex lost 0.77 per cent to end below 37,400. The fall in the broader market indices was drastic, with Nifty Midcap and Smallcap plunging 1.92 per cent and 2.57 per cent, respectively. Among the sectoral indices, barring Nifty IT, all other sectoral indices witnessed heavy selling pressure, with Nifty PSU Bank, Nifty Metal, Nifty Metal and Nifty Auto leading the pack of losers.
The US markets started out Tuesday’s session on a weak note on the back of worrisome earnings reports and concerns about the US trade negotiations with China. However, as the day progressed, sentiments improved as consumer confidence index came in higher-than-expected and was at the best level since November. This helped the markets to recoup some of the losses. In the end, the Dow fell 22 points, the S&P 500 dipped 8 points and the Nasdaq shed 20 points.
The European markets ended Tuesday’s session with solid losses, weighed down by a mixed bag of earnings in the region and adding fuel to fire was the rising possibility of the UK leaving the EU without a deal. Germany’s DAX plunged 2.18 per cent, France’s CAC 40 tumbled 1.61 per cent and the UK’s FTSE 100 lost 0.52 per cent.