Markets likely to begin on a negative note tracking Asian peers

Indian benchmark indices are likely to witness quiet to modestly negative start to the trading session as cues from Asian peers are not encouraging. The trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty may open down by 20 points at 10,529.  

Asian markets are bleeding red and are mostly trading in the negative territory on Wednesday, taking cues from a slump in the US stocks overnight. Japan’s Nikkei 225 has lost 1.06%, followed by Hong Kong’s Hang Seng and Shanghai Composite, which have slipped lower by 0.82% and 0.50%, respectively.   

Back home, key benchmarks indices finished a range-bound session with modest gains, bringing an end to the five-session losing streak. The BSE Sensex settled at 34,651, up by 35 points, and the Nifty closed at 10,537, up by 20 points. The broader market indices outperformed their frontline peers as the Nifty Mid-cap and Small-cap gained 0.26% and 1.48%, respectively. Among sectoral indices, majority of the indices ended in the green, barring Nifty Pvt Bank and Nifty FMCG, which lost 0.30% and 0.28%, respectively, while, Nifty PSU Bank jumped 3.25%.  

The US stocks closed lower on Tuesday, with major indices ending the day near their lows as uncertainty over the US  trade policy loomed large. US President Donald Trump stated that he was ‘not really pleased' with trade talks with  China so far. The Dow Jones Industrial Average lost 179 points to close at 24,835, the S&P 500 shed 9 points to finish at 2,724 and the Nasdaq Composite declined 16 points to settle at 7,378.  

The European stocks closed higher on Tuesday. Bank of England Governor Mark Carney denied claims that the central bank has confused investors and households by deciding not to hike interest rates earlier this month. The DAX of Germany climbed 0.71%, CAC 40 of France rose 0.05% and the FTSE 100 of UK added 0.23%.