Peace at start! Markets set for a positive opening
Going by the early indication of SGX Nifty, the markets may open the session on a flat note with a positive bias. The global markets are in a cheerful mode as US President Donald Trump administration said it would delay tariffs on some Chinese products. At the time of writing, SGX Nifty was up by 2 points at 10,922 mark. Key earnings for the day include Grasim Industries, IDBI Bank and Wockhardt. Investors will also track India’s WPI numbers for July which is set to release later in the day.
The Asian markets were seen advancing in early trade on Wednesday following strong close on Wall Street on the back the US decision to delay additional tariff on certain Chinese products which were going to come into effect from September 1. The Japanese Stock index Nikkei 225 has gained 0.63 per cent. The Hong Kong’s Hang Seng has added 0.50 per cent and the China’s Shanghai Composite Index has surged 0.82 per cent.
Back home, the markets resumed trading on Tuesday after an extended weekend and it started slightly higher as the poster boy of the markets Reliance Industries opened with a significant gap-up post the announcements in its 42nd AGM. However, straight after opening selling pressure was witnessed from the word go and it accentuated as the day progressed. In the end, markets ended near day’s low and registered their worst fall in over a month despite index bellwether Reliance surging and ending over 9 per cent in Tuesday’s session. Selling pressure was more severe in the broader market indices with Nifty Midcap and Smallcap plunging 2.17 and 1.60 per cent, respectively. All the other sectoral indices witnessed heaving selling pressure with Nifty Auto, Nifty Financial Service, Nifty PSU Bank, Nifty Private Bank, and Nifty IT were top losers. The Indian volatility Index shot up 12 per cent to 17.75 mark.
US markets ended with a scintillating performance on Tuesday with the Dow jumping 1.5 per cent, the S&P 500 Index gained 1.5 per cent and the Nasdaq Composite rose 2 per cent. The sentiments turned bullish on Wall Street after the news broke from the White House that the additional tariffs would be delayed to December 15. While several items are no longer included on the list. Additionally, some of the media house reports suggested that the US and China held a phone conversation and are expected to resume phone negotiations. On the economic front, consumer price rose in line with expectation in the month of July.
The European equities ended Tuesday’s session in the green. German DAX climbed 0.60 per cent, French CAC 40 and the UK’s FTSE 100 soared 0.99 and 0.33 per cent, respectively.