Markets may open on a negative note tracking weak global cues
Today, Indian stock markets are likely to open on a subdued note tracking weak cues from the global market indices. However, the GDP and other core data would be closely watched, which may bring in some cheer in the markets. The SGX Nifty is trading flat to negative at 11724, shedding 12 points at 7:40 hours.
Asian markets, majorly China and Japan, are trading lower amid trade war concerns kicked-off yet again by the Trump administration and gains in treasuries, dollar and yen and with investors shifting to safe havens. While the US Fed is staying firm on tightening of interest rates, China is bent on loosening to stem currency depreciation. Japan’s benchmark Nikkei 225 is marginally down by 0.3 per cent. Hong Kong’s Hang Seng has fallen drastically by 1.3 per cent and Shanghai Composite too has followed suit declining 0.5 per cent at 7.30 hours IST.
The August derivatives expiry ended on a flat note after a volatile session, led by cautiousness ahead of the release of macroeconomic numbers. The rupee hit all-time low of 70.85 amid rise in the oil prices to multi-month high. Both Nifty and Sensex kicked-off a retreat from the beginning itself after a positive start, but recovered to trade flat to negative in the closing hour. Nifty and Sensex shed 15 and 33 points to close at 11677 and 38690, respectively. The broader market indices outperformed the benchmark indices with marginal gains. The defensives such as Pharma and FMCG surged more than a per cent each, while Banking and Finance and Auto tried to drag the markets down. Market breadth remained marginally positive with 1436 advances and 1281 declines on the BSE.
The US stock markets snapped their four consecutive days of winning streak after Trump yet again tweaked tariffs against China. Trump is expected to propose tariffs on USD 200 billion worth of Chinese products. Further, investors also eyed the US and Canada talks on the revised NAFTA. The talks are expected to meet the Friday deadline. Dow Jones shed 138 points to close at 25987 and S&P 500 closed in red with 0.4 per cent loss to end the day at 2901.13. Nasdaq closed marginally down with a loss of 0.26 per cent.
The European stocks too pulled back on during the closing hour amid trade war concerns triggered yet again by Trump. Even the ongoing talks on the US and Canada trade deal weighed on the markets. Traders also keenly watched the freshly released corporate results. The DAX was down 0.39 per cent, CAC 40 of France closed lower by 0.4 per cent and the FTSE 100 of the UK too closed in the red shedding 0.6 per cent.