Slow but a steady start for markets

The lack of any major development on our shores may have sent market participants to look more closely at the developments taking place overseas but the overseas markets are also seen lacking any decisive direction due to the absence of any major trigger. However, all the market participants have glued their eyes on the development of the US and China phase one deal, as time is ticking away and the deadline of additional tariffs of December 15 is just around the corner. SGX Nifty indicates the Indian markets are in for a slow but steady start, as SGX Nifty trades up by 11 points at 11,976 levels.
 
On the Asian side, lingering uncertainty over the US and China trade negotiations are looming large. The majority of the Asian markets are trading in negative terrain, with Hong Kong’s Hang Seng down by 0.27 per cent, Nikkei 225 slipping 0.18 per cent, and China’s Shanghai Composite dropping off 0.26 per cent. Further, the market participants await the release of Chinese inflation data for November, which could set the tone for the markets going forward.
 
Back home, on Monday key equity market barometers eked out modest gains before swinging both ways. The Nifty settled at 11,937 levels, up by 16 points, and he BSE Sensex rose 42 points at 40,487. However, the broader market saw a negative close, as Nifty Midcap and Smallcap slipped 0.03 and 0.75 per cent, respectively. On the sectoral front, Nifty Realty was top decliner, followed by Nifty IT and Nifty Media. On the flipside, Nifty Auto and Nifty Metal were top gainers.
 
In overnight development, the US stocks got off to a mixed start but slipped into negative terrain, as the session unfolded. No decisive decision on phase one deal between the US and China has turned market participants cautious, as new tariffs on Chinese imports are set to take effect from December 15. All told, the Dow closed down by 105 points, the S&P 500 dropped 10 points, and the NASDAQ fell 35 points. The European markets too finished lower.