Muted opening likely despite positive global cues

A quiet opening is expected for the Indian markets and we may see the markets trading in a range with stock-specific movement. The muted trend in the SGX Nifty suggests that Nifty could open unchanged at 11,421.  
  
Asian markets advanced on Friday on the back of strong leads from Wall Street and hopes for a trade agreement between China and the US. Japan’s benchmark Nikkei 225 index has gained 0.53 per cent, Hong Kong's Hang Seng has surged 0.52 per cent and China’s Shanghai Composite has added 0.30 per cent.  
  
Back home, key benchmark indices endured a volatile session on Thursday as the indices oscillated between red and green zones to settle below their crucial 37,700 (Sensex) and 11,400 (Nifty) marks. After opening the session on a pessimistic note, the markets did manage to recoup the opening losses and traded briefly in the positive territory. But the recovery proved short-lived and markets once again slid back into the red and closed near the intra-day low levels. The broader indices too ended in the red with the Nifty Mid-cap and Small-cap losing 0.09 per cent and 0.58 per cent, respectively. On the sectoral front, most of the sectoral indices ended lower, barring Nifty Pharma, Nifty Auto, Nifty IT and Nifty FMCG, while Nifty Metal slumped 2.27 per cent and topped the loser’s list.  
  
On the Wall Street, Thursday turned out to be fabulous day for the markets, with the Dow having its best day in about four months as the rally in the stock of retailing giant Walmart on the back of strong earnings contributed to the index's strength. Additionally, China has accepted an invitation from the US for a new round of trade talks to be held in late August. The Dow Jones Industrial Average jumped 396 points to close at 25,558.73; the S&P 500 gained 22 points to finish at 2,840 and the Nasdaq Composite Index rose 32 points to end at 7,807. On the data front, a report released by the US labour department showed first-time claims for US unemployment benefits unexpectedly edged lower in the week ended August 11. Meanwhile, a separate report from the US commerce department showed US home-building rebounded less-than-expected from a nine-month low in July.  
  
The bourses in Europe rallied on Thursday following news that the US and China are prepared to resume trade talks in late August. Along with trade talk development, corporate earnings also lifted investors' sentiments. The DAX of Germany advanced 0.61 per cent; CAC 40 of France climbed 0.83 per cent and the UK’s FTSE 100 spiked 0.78 per cent. On the data front, the Euro area trade surplus decreased for a third straight month in June. In the UK, retail sales increased 0.7 per cent in July compared with a decrease of 0.5 per cent in June, according to the Office for National Statistics.