Market may begin on a cautious note tracking weak global cues
The key Indian equity indices are likely to witness a cautious start due to weakness in equity markets across the world. A negative trend in the SGX Nifty index future, which was trading at 10,550, down by 38 points, also indicated negative opening. Among the results of Nifty 50 companies to watch out for include GAIL, Cipla, Power Grid Corporation and State Bank of India. On the macroeconomic front, investors should watch out for Nikkei Services PMI for October.
Asian stock markets are losing ground on Monday following negative cues from Wall Street on Friday. Hong Kong’s Hang Seng has plummeted 1.67 per cent, the Japanese stock market Nikkei 225 has plunged 1.44 per cent and China’s Shanghai Composite index has slipped 0.43 per cent.
Back home, going into the weekend, there was a lot to cheer for the market participants as bulls registered a scintillating rally on the final trading session of the week. The sentiments in the markets were upbeat as concerns over the trade war eased, correction in the crude oil prices from higher levels and the strengthening of rupee against the US dollar. The Nifty settled the day with a gain of over 1.6 per cent above the 10,550 mark and the BSE Sensex jumped 1.68 per cent above its important psychological level of 35,000. The broader indices ended the day with decent gains as Nifty Mid-cap and Small-cap surged 0.53 and 1.31 per cent, respectively. Majority of the sectoral indices closed the day in the green with Nifty Auto and Nifty Metal gaining the most, while Nifty IT and Nifty Media ending as top losers.
The three-day rally on the Wall Street fizzled out on Friday in the wake of conflicting statements from White House officials and President Donald Trump that a trade plan for China was in the works as also tech behemoth Apple delivering weaker-than-expected earnings outlook. In the economic news, the US Labor Department said non-farm payroll employment surged by 250,000 jobs in October, which was much better than anticipated. In the end, the Dow Jones Industrial Average slipped 0.4 per cent; the S&P 500 slid 0.6 per cent and the tech-heavy Nasdaq lost about 1 per cent.
The European indices pared their early gains to end the Friday’s session on a mixed note. The Eurozone manufacturing PMI declined to a level of 52.0 in October as compared with 53.2 in September and broadly remained unchanged compared with an initial or flash reading of 52.1. The DAX of Germany gained 0.44 per cent and the CAC of France increased by 0.32 per cent, while UK’s FTSE 100 declined by 0.29 per cent.