Subdued start foreseen for the markets amid mixed Asian cues
Indian benchmark indices are likely to witness a dull start as cues from Asian peers are mixed and the standoff between the US and North Korea is likely to make matters worse. The trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty may open almost unchanged around the level of 10,511.
Asian stocks markets are trading mixed on Friday following lacklustre cues from the US markets overnight as geopolitical worries hovered after the US President Donald Trump called off the summit that was set to take place on June 12 in Singapore. Hong Kong’s Hang Seng has lost 109 points and Shanghai Composite has shed 6 points, whereas Japan’s Nikkei 225 has gained 16 points.
Back home, Thursday turned out to be a remarkable day of trading for the Indian equity benchmarks where bulls made a comeback on Dalal Street, with frontline indices recapturing their crucial levels at 10,500 (Nifty) and 34,600 (Sensex). The performance of the broader market was tepid as the Nifty Mid-cap and Small-cap indices dipped 0.43% and 0.02%, respectively. On the sectoral front, buying interest was witnessed in a majority of segments. The Nifty IT surged 2.31% followed by Nifty PSU Bank, Nifty Pharma, Nifty Bank. On the downside, both Nifty Auto and Nifty Realty lost 1.65% and 0.70%, respectively.
The US stocks recouped early losses to end slightly lower on Thursday, with energy stocks leading the decline as crude oil price fell. The initial set-back in the trading session was seen after President Donald Trump cancelled the planned meeting with North Korean leader Kim Jong Un. In the economic news, the US Labor Department released a report showing unexpected increase in initial jobless claims, which rose by 11,000 to 234,000 in the week ended May 19. The Dow Jones Industrial Average slipped 75 points to close at 24,812, the S&P 500 fell 6 points to finish at 2,728 and the Nasdaq Composite Index dipped 2 points to end at 7,424.
The European stock markets closed in the red on Thursday on news of US President's cancelled meeting with North Korean leader. Europe’s auto stocks led the losses. The DAX of Germany fell 0.94%, CAC 40 of France dropped 0.31% and the FTSE 100 of UK declined 0.92%.