Markets may start on a negative note amid gloomy global cues

The weakness that has set into Indian equity markets is likely to stay put as the markets are set to start the June F&O series expiry session on a weak note amid gloomy leads from the global markets. Nifty 50 index future on the Singapore stock exchange is currently trading lower by 19 points at 10,654. 

Asian stock indices were trading mostly lower in early trading on Thursday after the US stocks fell to the lowest level since May. China’s Shanghai Composite is down by 0.43%, Japan’s Nikkei 225 has lost 0.42% and Hong Kong’s Hang Seng has dipped below the neutral line.    

Back home, the benchmark indices took a beating in Wednesday’s trading amid rising crude oil prices and weakening rupee. The benchmarks Sensex and Nifty beached their crucial 35,300 and 10,700 levels, respectively. The selling pressure was intense in the broader markets, as the Nifty Mid-cap and Small-cap plunged 1.50% and 2.27%, respectively. Among sectoral indices, barring Nifty IT and Nifty Pharma, all other sectors ended in the red with Nifty PSU Bank leading the fall.   

The US stocks erased early gains and drifted into negative territory on Wednesday as sentiments were once again driven by uncertainty over the trade policy. The Dow Jones Industrial Average fell 166 points to 24,118; closing below its important long term moving average, i.e. 200-day moving average for the third straight session. The S&P 500 index shed 23 points to finish at 2,700, closing below its 50-day moving average for the first time since May 8 and the Nasdaq Composite Index plunged 117 points to end at 7,445. All three indices ended at their lowest levels in more than a month.  

The European indices ended Wednesday’s session firmly in the positive territory, despite witnessing a cautious start. The upmove was triggered by the news that President Donald Trump’s plan to crack down on Chinese investments in the US was less radical than feared. The DAX of Germany gained 0.93%, the CAC 40 of France climbed 0.87% and the UK’s FTSE 100 jumped 1.11%.