Markets may tumble at the start owing to negative global cues

In the early action, SGX Nifty is trading with deep losses, courtesy sharp decline amongst Asian peers and lower closing on the Wall Street on Friday as hopes of trade deal with China faded. At the time of writing, SGX Nifty is trading down by 75 points at the 10,940 mark. Today, as many as 100 companies including Berger Paint, Torrent Power and SRF are scheduled to announce their earnings for the quarter ended June 2019. Also, investors will keep an eye on IHS Markit India Services PMI due to be released today.

The Asian markets came under selling pressure on Monday morning after stock on the Wall Street dropped on Friday amid renewed trade tensions between the US and China. The Japanese stock index Nikkei 225 has plummeted 2.11 per cent, Hong Kong’s Hang Seng has fallen 1.95 per cent and China’s Shanghai Composite Index has dropped 0.68 per cent.

Back home, the final trading session of the week turned out to be a volatile one. However, the markets recovered from the lower levels to end the session with modest gains. Sentiments turned swiftly on the D-Street after media reports suggested that Prime Minister Office (PMO) and finance ministry’s top bureaucrats were in talks over foreign portfolio investor (FPI) surcharge issue, which led to strong pullback. In the end, Nifty inched up 0.16 per cent to 10,997 level and BSE Sensex rose 0.27 per cent to end at 37,118. The broader market indices settled the session with minor losses, with Nifty Midcap and Smallcap losing 0.29 per cent and 0.33 per cent, respectively. Among sectoral indices, Nifty Auto and Nifty IT were the top gainers, while, Nifty Metal and Nifty Media were top losers.

After initial setback, the US stocks regained some lost ground over the course of trading on Friday but ended the day in the red. The tech-heavy Nasdaq plunged over a percent and underperformed its counterparts, the Dow slipped 0.4 per cent and the S&P lost 0.7 per cent. On the economic front, the US labour department reported that non-farm payrolls climbed by 164,000 in July and the unemployment rate remained at 3.7 per cent in July, unchanged from June.

The European markets tanked on Friday amid trade war fears as the US President Donald Trump threatened to impose tariffs on Chinese products. Germany’s DAX tumbled 3.11 per cent, France’s CAC 40 nosedived 3.57 per cent and the UK’s FTSE 100 dropped 2.34 per cent.