Markets may open on a negative note amid mixed global cues

After a scintillating rally seen in the previous trading session with both the key benchmarks logging fresh all-time high, the benchmark indices may take a breather today at the opening bell as indicated by the SGX Nifty in early action. At the time of writing, SGX Nifty was down by 39 points at 12,079 levels.

The stocks in Asia are lacking clear direction on Tuesday morning amid global growth concerns.  The Japanese stock index Nikkei 225 has dipped 0.31 per cent.  In South Korea, the KOSPI shed 0.20 per cent, while Hong Kong’s Hang Seng has added 0.04 per cent.

Back home, the first trading session of June 2019 turned out to be a fantastic one as key equity benchmarks hit lifetime closing highs. The Sensex and Nifty closed above their crucial psychological levels of 40,200 and 12,050, respectively, for the first time ever. The broader indices ended in the green as well but underperformed the frontline gauges with Nifty Midcap and Smallcap adding 0.96 per cent and 0.28 per cent, respectively. Among sectoral indices, barring Nifty Media, all the sectoral indices witnessed healthy buying with Nifty Auto, Nifty Metal, Nifty FMCG, Nifty IT and Nifty Financial Services being the top gainers.

The US stocks ended Monday’s session on a mixed note. The technology stocks were the culprit for the steep drop in the tech-heavy Nasdaq as investors were rattled by reports that some of the nation’s largest technology companies could face regulatory scrutiny. At the close of the session, the Dow Jones Industrial Average was up marginally, the Nasdaq Composite plummeted 1.6 per cent and the S&P 500 Index slipped 0.3 per cent. In the economic news, as per data released by ISM, the expansion of the US manufacturing activities decelerated in May to the slowest pace since October 2016.   

The European markets ended the first trading session of the week in the positive terrain. Germany’s benchmark DAX rose 0.56 per cent, France’s CAC 40 index added 0.65 per cent and UK’s FTSE 100 ended up by 0.32 per cent.