US President's Tweet Keeps Markets Positive

Welcome to the final trading session of the week. We begin with sentiments badly torn between two extreme factors. On one hand, there are the dismal IIP numbers for October, which were announced on Thursday post-market hours, and on the other hand, the inflationary monster is back again, as November retail inflation rises to 5.54 per cent over 3 years. This contraction in the IIP could play a spoiler in the party that investors and traders are currently reveling in. However, we believe today market participants will take this data with a pinch of salt, as the biggest headline, which is helping to aid sentiments across the globe is the tweet from the US President that the States is getting very close to a big deal with China. At the time of writing, SGX Nifty was up by 34 points trading at 12,059 levels. It would be interesting to watch out whether this big development of the US and China result in Nifty closing above 12k mark. On domestic shores, WPI inflation will garner the attention of market participants in today’s session.
 
It is a sea of green for Asian equities on Friday after the US President Donald Trump tweeted that a ‘big deal’ with China is ‘getting very close’. Japan’s Nikkei 225 has jumped 2.44 per cent, followed by Hong Kong’s Hang Seng and China’s Shanghai Composite, which were trading higher by 1.77 and 1.13 per cent, respectively.
 
Back home, Thursday turned out to be a terrific day as bulls were in full control for the major part of the trading session. however, at the fag end of the day, some profit booking was seen at higher levels. Despite this, the key benchmark indices ended on a higher note, up by 0.52 (Nifty) and 0.42 (BSE Sensex) per cent, respectively. The broader markets also moved higher in line with benchmark indices as Nifty Midcap and Smallcap advanced 0.82 and 0.47 per cent, respectively. On the sectoral front, except for the IT index, all the sectoral indices ended with decent gains and Nifty Metal and Nifty PSU Bank were the top gainers.
 
Here is what happened overnight in the western markets. The NASDAQ Composite and the S&P 500 closed at record highs on the report of the progress in the US trade talks with China. The US President Donald Trump tweeted that the US is ‘getting very close to a big deal with China’. All told, the Dow rose 221 points, the S&P 500 surged 27 points, and the NASDAQ climbed 63 points. The European equities ended higher as well and the European Central Bank kept its stance unchanged.