Markets may open on a cautious note ahead of release of key macro data

The benchmark indices are likely to make a soft start as Asian peers lack clear trend and staying cautious ahead of some crucial economic data to be released later today. The SGX Nifty suggests that Nifty may open around 10,907, down by 23 points. The market participants will keep an eye on key domestic macro data like the consumer inflation and the Index of Industrial Production (IIP) which will be released today. 
  
The Asian markets were mixed on Tuesday following a tepid session on the Wall Street. Japan’s Nikkei 225 jumped 2.02 per cent, while Hong Kong’s stocks index Hang Seng and China’s Shanghai Composite Index edged down 0.25 and 0.06 per cent, respectively. 
  
Back home on Monday, the markets made a weak start, and as the day progressed, selling pressure intensified. However, the markets came off from the day’s low, but extended the downfall for the second straight day. Nifty ended down by 0.50 per cent below the 10,900 mark and BSE Sensex lost 0.41 per cent to close below the 36,400 mark. The broader indices underperformed the benchmark indices with Nifty Mid-cap and Small-cap losing 1.67 per cent and 1.80 per cent, respectively. Among sectoral indices, barring Nifty Media and Nifty IT, all other sectoral indices ended in the red, with Nifty PSU and Nifty Pharma leading the list of losers. 
  
The US equities lacked direction at the start of the week as uncertainties over the trade talks came to the fore in the midst of the start of another round of US-China trade talks that will be accompanied by higher level negotiations later this week. Also, the potential for another shutdown in Washington if the two sides of the aisle could not come to an arrangement weighed on traders’ minds . The Dow Jones lost 0.21 per cent, while, the Nasdaq added 0.13 per cent and S&P 500 rose 0.07 per cent, respectively. 
  
The European markets ended the first trading session of the week in positive terrain. The DAX of Germany gained 0.99 per cent, the CAC 40 of France surged 1.06 per cent and the FTSE 100 of the UK ended higher by 0.82 per cent.