Weak global cues led SGX Nifty in red

For the first time since March 5, Nifty closed above 11,200 level in the last trading session. Even the broader markets were cheering. As a result, market participants would be expecting the bulls to continue its northward journey! But as the sentiments reverses due to melancholy cues from the global markets, caution is likely to be the buzzword today. This is due to the incoming data from the US, dictating that the jobless claims were higher than expected, increased for the first time in nearly four months, suggesting the job recovery could be wobbly.

At 7:45 AM, SGX Nifty was down by nearly half a per cent at 11,174.50 levels. The immediate support for the index is placed around 11,150 levels.

The earnings seasons have picked up the pace as nearly 70 corporates including big names such as Asian Paints, Ambuja Cement, ITC, JSW Steel and ZEEL are slated to report their quarterly earnings today.

Following a sharp plunge on Wall Street overnight, the early action in Asian indices indicates a slippery ground on Friday. Dow drowned nearly 350 points, whereas the tech-heavy Nasdaq nosedived 244 points. Hong Kong’s Hang Seng was trading down by 0.91 per cent and was seen playing around its important psychological level of 25,000 and China’s Shanghai Composite lost 0.84 per cent has breaching its 3,300 level. Japan’s Nikkei 225 is closed on account of Sports Day (National Holiday).

Asian Markets

On Thursday, the bulls were back in action on D-Street after a day of pause. Nifty and Sensex rallied 0.74 per cent and 0.71 per cent, respectively. At closing bell, Nifty was above 11,200 level, whereas Sensex was above 38,100 mark. The specialty chemical maker Rossari Biotech made a bumper debut on the bourses. The broader markets outperformed the frontline gauges with Nifty Mid-cap and Nifty Small-cap ascending 0.96 per cent and 1.03 per cent, respectively. On the sectoral front, except for Nifty IT all other sectoral indices ended in green. Nifty Pharma and Nifty Realty registered themselves as top gainers.

The economic data and quarterly earnings from big companies like Microsoft and Tesla were reported on Thursday, making it an action-packed day on Wall Street.  Stocks witnessed a soft start in early part of the trading session. However, as the day was progressing things were going just worse due to the weekly initial jobless claims data. The jobless claims for the week ended July 18 surged for the first time in nearly four months. This suggested that the labor market was derailed amid increased coronavirus cases. This created selling pressure on Wall Street. Nasdaq witnessed a steep fall of over 2 per cent followed by Dow and S&P 500 that drowned 1.31 per cent and 1.23 per cent, respectively. As Eurozone consumer confidence unexpectedly deteriorated in July, European indices ended mostly lower.

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