Markets likely to open in the green reacting to positive GDP growth
The key benchmark indices are likely to kick off June series on a positive note as markets will react to GDP numbers which were released after market hours. India’s GDP grew 7.7% in Q4 and retained its fastest growing economy label. The trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty may open higher by 28 points around the level of 10,744.
Majority of the Asian markets are trading with modest gains on Friday. Japan’s Nikkei 225 has gained 72 points, Hong Kong’s Hang Seng has added 21 points, while Shanghai Composite has dipped 7 points.
Back home, the benchmark indices observed a gap-up opening on Thursday. Thereafter, the indices oscillated in a narrow range for the initial part of session, but thanks to late buying on the bourses, both benchmark indices finished with gains of over 1 per cent. Nifty ended above the 10,700-mark and Sensex settled above the 35,300-mark. The broader market indices underperformed the major indices, as the Nifty Mid-cap and Small-cap slipped 0.38% and 0.98%, respectively. On the sectoral front, banking stocks were buzzing on bourses, and on the other hand, Nifty Pharma and Nifty Media emerged as top losers.
The US stocks ended Thursday’s session in the red terrain following news that the Trump administration plans to impose steel and aluminium tariffs on Canada, Mexico and the European Union, thereby igniting possibilities of retaliation by trade partners and reigniting fears of a global trade war. The Dow Jones Industrial Average fell 252 points to close at 24,416, the Nasdaq Composite lost 20 points to finish at 7,442 and the S&P 500 declined 19 points to end at 2,705.
The European stock fell on Thursday after President Donald Trump administration announced plans to impose tariffs on Canada, Mexico and the European Union, sparking fears of a trade war. Meanwhile, two anti-establishment parties struck a deal on a coalition government, ending the three months of political turmoil in Italy. The DAX of Germany fell 1.40%, CAC 40 of France slipped 0.53% and the FTSE 100 of UK finished lower by 0.15%.