Positive global cues may see markets opening in the green
Indian markets are expected to start the final trading session of the week with an uptick as cues from the global markets are positive. The SGX Nifty is trading up by 42 points at 11,354, indicating positive start for the day. However, it would be interesting to see how the market shapes up as the day progresses, because lately we have seen that after a positive start, market pares it gains and selling pressure intensifies in the last leg of trading. Would it be a replica of the previous trading session or would the bulls return to the scene? The answer to this would depend a lot on the rupee movement.
Majority of the markets in Asia traded in the positive territory on Friday, following record highs on the Wall Street. The Japanese market Nikkei 225 has gained 0.50 per cent, Hong Kong’s Hang Seng has added 0.26 per cent, while China’s Shanghai Composite is trading just below the neutral line.
Back home, Indian equity benchmarks extended their southward journey for the third straight day in a row with the frontline indices settling below their important psychological marks at 11,250 (Nifty) and 37,200 (BSE Sensex). After witnessing stable start on the back of positive global cues, the bulls and bears had a tough fight and indices swung both ways during the initial part of the trading session. However, in the last leg of trading, markets witnessed a landslide. The broader market indices continued their underperformance with Nifty Mid-cap and Small-cap losing 0.93 and 1.10 per cent, respectively. On the sectoral front, barring Nifty Metal and Nifty IT, all other indices ended with losses with Nifty Media, FMCG and Realty being top losers.
On the Wall Street, Thursday turned out to be a fabulous day of trading for the markets as the Dow and the S&P 500 indices registered new record closing highs. The Dow Jones Industrial Average surged 251 points to close at 26,657; the S&P 500 rose 23 points to finish at 2,931 and the Nasdaq Composite rallied 78 points to end at 8,028. In the economic news, US home sales held steady, while the US weekly jobless claims unexpectedly fell, hitting near a 49-year low in a sign that the job market remains strong, regional manufacturing showed a significant acceleration in the pace of growth and a report from the Conference Board showed a continued increase by its index of leading economic indicators in the month of August.
The European equities traded in the green on Thursday, with financials and materials leading the upside. Additionally, the traders were cheered by better-than-expected retail sales report from the UK. On other hand, the euro area consumer confidence weakened sharply in September. The DAX of Germany climbed 0.81 per cent; the CAC 40 of France jumped 1.07 per cent and the UK’s FTSE 100 gained 0.49 per cent.