Markets to begin the week on positive note

Welcome to the first trading session of the week!

Nifty extended its northward journey for the sixth successive trading sessions in the last week, making it a longest winning streak post April 2019. Early trends in SGX Nifty suggests that the bulls are likely to have an edge this morning as Nifty is likely open the session above 11,200 level. At 7:45 AM SGX Nifty was trading higher by 29.50 points. This buoyant move can be accredited to the news of yet another relief package to be announced by the US. According to the reports, US Secretary of Treasury - Steven Mnuchin has said that Grand Old Party (GOP) coronavirus relief package will be released on Monday.

On the other hand, as the market continues to ascent higher, the valuations looks quite stretched and are just not providing the comfort. Based on valuations, the market has moved above its pre-pandemic levels. This was aided by the performance of a handful stocks like index bellwether, Reliance Industries Ltd (RIL).

Having said that, this week is likely to be full of action as the near month derivatives expiry is scheduled on Thursday. Further, many heavyweights like Kotak Bank, Tech Mahindra, Bharti Aritel, Ultratech cement, Dr Reddy’s, Maruti, HDFC, Reliance, IOC and SBI are slated to announce their quarterly earnings this week. On global front, the market participants’ eyes would be glued to outcome of the US FED and action between US and China.

Today in early deals, Asian indices are giving no clear direction. The Japan’s Nikkei 225, that resumed trading after a long weekend led the losses among the Asian markets. This was amid the Tokyo metropolitan government reporting 239 new Covid-19 cases on Sunday marking its sixth consecutive day of new cases in the city exceeding 200 mark. China’s Shanghai Composite is trading flat and is fluctuating around the neutral line. On the flipside, Hong Kong’s Hang Seng is up by 0.70 per cent.  

Asian Markets

Post the initial setback, the key domestic benchmark indices regained bulk of its losses. This was aided by the index pivotal RIL, resulting Nifty and Sensex to end the final trading session of the week with modest losses. For the week, Nifty surged 2.68 per cent to end slightly below 11,200 level. And Sensex hopped 3 per cent to settle above 38,100 level.  The broader indices followed the frontline gauges as Nifty Mid-cap and Nifty Small-cap ascended 1.88 per cent and 2.83 per cent, respectively. On Friday as well as for the overall week, the advance-decline ratio was skewed towards the decliners.  On weekly basis, Nifty Private Bank, Nifty Bank and Nifty IT were the top gainers.

The rising tensions between the US and China overshadowed upbeat economic data leading the US markets to end the session in red on Friday. Beijing on Friday announced that it is cancelling the license of the US consulate general in the southwestern Chinese city of Chengdu. Further, it ordered the consulate to close down their operations. On the economic front, the department of commerce said that new home sales climbed in June, beating the expectations. Meanwhile, on back of warning of further postponing the production of its next-generation chips, Intel stock plunged over 16 per cent. The tech-heavy Nasdaq led the losses followed by Dow and S&P 500. Despite the upbeat economic data in the region, European indices ended the session lower. This was due to the elevated tensions between the two largest economies of the world, tampering investors’ confidence.

US Markets

Europe Markets

Commodity