Markets may see flat to positive start

Asian peers are buoyant in early deals on Tuesday and this optimism is sure to spill on to the Indian shores as well. SGX Nifty, which is currently trading almost with a gain of 10 points at 11,392 levels, is already reflecting it. However, the gains are likely to remain capped as according to media reports, tensions between India and China have flared up all over again.

Asian markets on Tuesday were trading in green during the early trade. Japan’s Nikkei 225 is leading from the front as it has gained 0.53 per cent, even when the data showed that Japan’s economy shrunk more than expected in Q2. Hong Kong’s Hang Seng and China’s Shanghai Composite has added 0.30 per cent and 0.15 per cent, respectively.

After witnessing selling pressure in the initial hour of the trade, Indian markets bounced back and ended Monday’s session with modest gains. Nifty and Sensex added 0.19 per cent and 0.16 per cent, respectively. A divergent trend was seen in the broader indices with Nifty Mid-cap slipping 0.86 per cent, while Nifty Small-cap ended with minuscule gains of 0.12 per cent. The majority of the sectors ended in the red with Nifty Realty, Nifty Private Bank, and Nifty Auto being the top losers. While on the other hand, Nifty IT and Nifty FMCG were the top gainers.

US markets were closed for a holiday on Monday in observance of Labour Day. The European indices witnessed a strong rally on Monday after optimism about the Coronavirus vaccine and Eurozone investor confidence index improved for the fifth successive month and logged its highest level since February.