Reliance deal may perk up the markets despite negative global cues
The Indian markets returns after a long weekend break and, going by early indication of SGX Nifty, the markets may witness a positive start to the day despite negative sentiments prevailing in the global markets. Helping the cause for the positive opening of the domestic markets will be the index pivotal Reliance Industries. The company at its AGM held on Monday announced that Saudi Aramco has signed a letter of intent for a proposed investment RIL’s oil to chemical division and this would be one of the largest foreign investments ever made in India. Apart from this big news, the market participants will keenly watch out for the commentary from the government on the FPIs surcharge issue and measures to boost economy which flared in media reports during last week. Also, commanding attention of investors would be the macroeconomic data as the CPI inflation data for the month of July along with the data on balance of trade are scheduled to be released today. At the time of writing, SGX Nifty was higher by 27 points at the 11,117 mark. A host of corporates are scheduled to announce their earnings today, notable among them being Coal India, Sun Pharma, ONGC, Bosh and Bharat Forge.
The Asian markets were seen sliding in early trading on Tuesday following depressing cues from the Wall Street overnight amid rising concerns about the US-China trade dispute and political tensions in Hong Kong. The Japanese stock index Nikkei 225 has lost 1.17 per cent, Hong Kong’s Hang Seng has slid 1.25 per cent and China’s Shanghai Composite index has corrected 0.59 per cent.
Back home, the markets extended their rebound and both the Nifty and BSE Sensex closed above their important psychological levels of 11,100 and 37,500, respectively. After a positive start, markets moved higher in the first half of the trading session. However, in the second half, profit-booking emerged at higher levels and, in the end, markets ended higher but off day’s highs on Friday. The broader market indices outperformed the frontline gauges with Nifty Midcap and Smallcap advancing 0.96 per cent and 1.02 per cent, respectively. A mixed trend was seen on the sectoral front where Nifty Auto, Nifty Financial Service, Nifty Private Bank and Nifty Bank registered gains between 1.14-1.99 per cent and Nifty Metal and Nifty Media were top losers.
The US markets ended sharply lower on Monday as investors were worried that prolonged trade disputes between the world’s two largest economies will lead to global slowdown as well as the escalated unrest in Hong Kong weighed on sentiments. The Dow declined 1.5 per cent, the tech-heavy Nasdaq dropped 1.2 per cent and the S&P 500 fell 1.2 per cent.
The European markets ended Monday’s session in the red amid escalation in the US-China trade war. Germany’s DAX ended lower by 0.12 per cent, France’s CAC 40 and UK’s FTSE 100 slipped 0.33 per cent and 0.37 per cent, respectively.