Markets to trade soft today

Good morning and welcome to a new week! In the second half of the last week, the markets surged higher on the back of multiple cues. The principal factor, which drove the markets across the world, was the ‘phase one’ of the US-China trade deal. However, on Monday morning, the cues from the global markets seem to be subdued and the SGX Nifty indicates a mild throwback from higher levels at the start, as the index trades about 15 points lower at 12,134 levels. The WPI inflation data is slated to be released later in the day.
 
The Asian markets are trading soft on Monday. Japan’s Nikkei 225 was down by 5 points, Hong Kong’s Hang Seng edged lower by 100 points, and China’s Shanghai Composite slipped by 4 points.
 
Back home, the final trading turned out an intense one, with the BSE Sensex reclaiming its important 41k mark and the NSE Nifty closing above 12,050 level. The key catalysts for the day were an element of clarity about the US-China trade deal and, further, Boris Johnson returning to power. In the broader market, the buying interest was witnessed, with Nifty Midcap and Smallcap rising 0.96 and 0.84 per cent, respectively. On the sectoral front, all the indices ended in the green, with Nifty PSU Bank and Nifty Metal gaining the most and ending as top gainers. 
 
As for global happenings, the US markets eked out gains on Friday, as stocks spent the day bouncing back and forth across the neutral line. In the end, the Dow closed 3 points higher and the S&P 500 closed almost unchanged. Meanwhile, the tech-heavy NASDAQ advanced 18 points to close at a new record high. The European markets were also buoyant on Friday after the UK Prime Minister Boris Johnson’s impressive triumph, as his election means a soft Brexit is very likely.