Markets set to smile at Start !
Welcome to the final trading sessions of the week on the D-Street and we begin the day with positive sentiments as news from the west is fueling the optimism. Also, the SGX Nifty is indicating that the markets are likely to open in green with a gain of about 0.25 per cent from it's previous day's close at 11,290 level. On the other hand, market participants will first react to TCS earnings in early trade as second quarter of the company came in slightly lower than analysts’ estimates and then the focus will shift to the Infosys earnings and the street seems to have a moderate expectation after a dent seen in TCS numbers. Besides, focus will also been on the performance consumer goods company Bajaj Consumer Care as this will give some estimate about the consumer buying sentiments. It would be interesting to see that after a positive start will the bulls extend its gains or bears will knock down the bulls. All-in-all, we are in for an interesting day as the bulls will fight to reclaim its 200-DMA and supporting to their task are the strong global cues.
In the Asian markets, the bulls are seen zooming in early Friday morning session in anticipation of US-China trade truce. The Hong Kong’s Hang Seng index had climbed 1.36 per cent followed by the Japan’s Index Nikkei 225 and the China’s Shanghai Composite which have advanced 0.97 and 0.13 per cent, respectively.
Back home, Thursday turned out to be a terrible day for the markets with Sensex and Nifty ending the trading sessions lower by 0.78 and 0.70 per cent, respectively. After starting the session on a negative note, key benchmark indices traded with modest losses in the morning trade but selling pressured intensified as the day progressed after International rating agency Moody’s Investors Services in its latest report cut India’s GDP growth forecast to 5.8 per cent for the current fiscal year from the earlier estimate of 6.2 per cent. In the broader market, both Nifty Midcap and Smallcap closed with losses of 1.16 and 0.47 per cent, respectively. Barring Nifty Pharam which ended almost unchanged, all other indices closed in negative terrain with Nifty PSU Bank, Nifty Private Bank and Nifty Bank were top losers. The advance-decline ratio was skewed towards decliners.
On Wall Street, stocks advanced on Thursday for a second straight day. The catalyst for buying was fueled by comment from US President Donald Trump that he would meet China’s chief trade negotiator at the White House, again raising hopes for resolution of long-lasting trade conflict between the world’s two largest economies. Meanwhile on the economic front, Consumer prices came in flat and weekly initial jobless claims dropped. For the day, the Dow rose 0.57 per cent, the S&P 500 added 0.60 per cent and the tech-heavy Nasdaq increased by 0.60 per cent. European indices too ended the day on a positive note even as economic data across the pond came in mixed.