Fine Start for Markets Today
In the early act, SGX Nifty can be seen marching higher, with global cues being supportive this morning. Further, bulls will take a sigh of relief from the fact that the IMF sees the Indian economic growth, rebounding to around 7 per cent in the next financial year. However, as the day progresses, all eyes will be on the results of the Assembly election, recently held in Haryana and Maharashtra. Exit polls have predicted a triumphant victory of BJP in both the states, a positive for the markets. However, any surprise may dent the market sentiments. Also, market participants will keep their eyes and ear wide open for the fresh wave of corporate results, ready to trickle in today as some widely tracked companies, including ITC, Colgate, Maruti Suzuki, United Spirits, IDFC First Bank, and Indigo will declare their earnings for July-September period. As I write this, SGX Nifty is up by 25 points at levels of 11,664.
The majority of the markets in Asia are trading in the green, this morning. Japan’s Nikkei 225 is leading with a gain of 0.64 per cent and is closely followed by Hong Kong’s Hang Seng, which is up by 0.47 per cent. All this while, China’s Shanghai Composite is trading near the flat line.
Back home, the markets opened on a flat note and soon bears pulled back the markets into the negative terrain. The buying interest surfaced at lower levels and the markets attempted a pullback, trading in the green. However, the markets spent a long time in the capped range due to the lack of follow-through action. Nonetheless, the markets turned volatile in the last hour of trade and pared its gains, finally ending the day with modest gains. At the closing bell, Nifty closed above 11,600 mark, up by 0.14 per cent, and BSE Sensex rose 0.24 per cent to close above 39,050 mark. In line with frontline gauges, the broader markets, such as Nifty mid cap and small cap, posted minuscule gains of 0.13 and 0.32 per cent, respectively. Talking about the sectoral performance, Nifty PSU Bank and Nifty Auto were the top gainers while Nifty Media and Nifty Realty were the top losers. The market breadth was slightly favorable, with advancers just ahead of decliners.
In overnight developments, the US stocks showed a lack of direction throughout the trading session as the majority of the day was spent bouncing back and forth across the neutral line. However, stock sentiments improved near the closing bell and, by the end of the session, stocks managed to make some progress. At the end of the day, the Dow was up by 46 points, the S&P 500 Index gained 9 points, and the NASDAQ was higher by 16 points. The European equities finished mixed amid Brexit’s continued uncertain zone.