Pessimism to greet D-street today!

Welcome to the first trading session of the week as well as the first trading session for the month of May. Pessimism is seen greeting Dalal Street on the first trading session as there is a new risk to growth in the form of revival of the trade war as hinted by US. SGX Nifty was deep in red on Friday and we could see a rub off at the opening bell. SGX Nifty indicates that Nifty may open around 9,367 levels. Reliance Industries and Hindustan Unilever would be in focus as the market participants would react to their quarterly numbers which were announced after the markets hours on Thursday. On the macro front, Markit Manufacturing data for April will be released today.  

Asian markets are trading lower on Monday as US is trying to put the blame of the pandemic on China and due to this, we can see revival of trade tensions. Hong Kong’s Hang Seng is down by a staggering 3.72 per cent while, Japan’s Nikkei 225 and China’s Shanghai Composite is closed for holiday.

Back home, on Thursday, the markets extended its upmove for the fourth straight day. Nifty surged 3.21 per cent and BSE Sensex jumped 3.05 per cent. In the broader market, Nifty Mid-cap and Nifty Small-cap gained 2.07 and 0.67 per cent, respectively. Talking about the sectoral front, barring Nifty Pharma and Nifty Media, all other indices ended in green wherein, Nifty Metal and Nifty Auto were the top gainers.  

On Friday, US equity markets plunged after US President Donald Trump threatened to slap new tariffs on China over its role in Coronavirus pandemic. Further, disappointed economic news acted as a fuel to the fire as April manufacturing output fell deeper into contraction territory. At the closing bell, Dow fell 2.6 per cent, S&P 500 dropped 2.8 per cent and Nasdaq plummeted 3.2 per cent. Majority of European indices were closed on Friday for Labour Day, however, UK markets opened sharply lower.