Markets may witness muted start following negative global cues

Indian markets are expected to halt their three-day winning streak following the negative lead overnight from the Wall Street and turbulence in the Asian markets. The RBI board meeting ended on a cordial note. The RBI has now agreed to work out a loan restricting scheme for SMEs for a loan exposure of up to Rs 25 crore and there could be some relaxation in lending for PCA banks. The SGX Nifty Index Future has slipped 32 points to 10,749, indicating soft start to the day.   
  
Asian indices are trading lower on Tuesday after a sell-off on the Wall Street as the technology sector remained under pressure. Hong Kong’s Hang Seng has plummeted 1.52 per cent; China’s Shanghai Composite index has dropped 1 per cent and the Japanese stock market Nikkei 225 has shed 0.87 per cent.  
  
Back home, equity benchmark indices started the week on a strong note and rose for the third day in a row. The BSE Sensex surged 0.90 per cent to close at 35,775 and the NSE benchmark index Nifty 50 advanced 0.76 per cent to close at 10,763. Both the indices clocked their best closing levels since October 3. The broader indices underperformed the frontline indices, with Nifty Mid-cap and Small-cap gaining 0.48 and 0.53 per cent, respectively. Talking about sectoral performance, Nifty FMCG was the best performing index followed by Nifty Realty and Nifty Metal, while Nifty PSU Bank and Nifty Fin Services ended in the red.  
  
The US stocks kicked off the holiday-shortened week on a dreadful note as the indices posted steep losses on Monday. Traders may have been concerned that the ongoing trade dispute between the US and China could carry on and that an agreement may be deferred for some time. The sentiments were also dented by a report from the National Association of Home Builders showing a substantial decrease in home builder confidence in the month of November. The tech-heavy Nasdaq underperformed its counterparts and ended near its lowest closing level in almost five months. The Dow Jones Industrial Average dropped 1.56 per cent; the S&P 500 lost 1.66 per cent and the Nasdaq plunged 3.03 per cent.  
  
The European stocks moved lower on Monday amid a drop in the US markets and as the most recent Brexit divorce agreement affected market sentiments. The DAX of Germany was down by 0.85 per cent, the CAC of France fell 0.79 per cent and the UK’s FTSE 100 declined 0.19 per cent.