Markets may remain buoyant riding on good news flow

Buoyancy may continue on the D-Street on Tuesday as supporting the market mood is the comment from the US President Donald Trump who said that the US and China will resume the trade talks. Meanwhile, another booster shot came in form of RBI accepting Bimal Jalan committee's recommendations and approved the fund transfer to the tune of 1.76 lakh crore to the Government of India. The RBI move could permit the government to kick-start a much-needed public spending push, alongside possible paring of the fiscal deficit. At the time of writing, SGX was trading with gains of 52 points at the 11,104 level.

A majority of the Asian markets are seen advancing on Tuesday following the overnight gains on the Wall Street after US President Donald Trump comments suggesting China wants to resume talks. The Japanese stock index Nikkei 225 is trading higher by 1.23 per cent and China’s Shanghai Composite has added 1.04 per cent, while Hong Kong’s Hang Seng is marginally down by 0.09 per cent.

Back home, markets started off Monday’s session with a massive gap-up but soon erased their early gains and sneaked into the negative terrain for a brief moment. However, once the dust of volatility settled down, bulls came back strongly and the indices witnessed enormous buying interest throughout the day to end the session near day’s high. The Nifty reclaimed its 11,000 mark and closed up by 2.11 per cent and the BSE Sensex jumped 2.16 per cent to 37,494. The broader markets ended the session with gains too, with Nifty Midcap and Smallcap jumping 1.58 per cent and 2.34 per cent, respectively. On the sectoral front, barring Nifty Metal, all sectors witnessed buying interest with Nifty Financial Services, Nifty Realty, and Nifty Bank being top gainers.

The US stock markets began the first session of the week with solid gains and the major markets indices held on to close the day firmly in the positive terrain. The sentiments on the Wall Street turned bullish after the US President Donald Trump said that the US had received calls from the Chinese in order to find a solution to the trade war. Further, on the economic front, the news was mostly upbeat as the July orders for durable goods were up 2.1 per cent and regional manufacturing activity unexpectedly expanded. Overall, the Dow rose 1.1 per cent, the S&P 500 surged 1.1 per cent and the Nasdaq jumped 1.3 per cent. 

The European markets overcame early losses to end the Monday’s session with modest gains on the back of reports of de-escalation of trade tensions between the world’s two largest economies. Germany’s DAX and France’s CAC 40 gained 0.4 per cent and 0.45 per cent, respectively. The UK’s FTSE 100 was closed on account of Summer Bank Holiday.