Markets may begin flat following mixed cues from Asian peers

The early trend in SGX Nifty suggests that Nifty may open the day on a flat note but the new cabinet formation is likely to enthuse the market to make an attempt to touch the level of 12,000 on Nifty. At the time of writing, SGX Nifty was trading higher by 7 points at 11,982 level. Market participants will take further cues from the key data to be released today, such as the GDP data for the March quarter and infrastructure output for the month of April.

Asian markets are lacking clear direction on the final trading session of the week as China’s May factory activity fell into a deeper contraction than the markets had estimated. The Japanese stock index Nikkei 225 has lost 0.78 per cent.  In South Korea, the KOSPI added 0.27 per cent, while Hong Kong’s Hang Seng was flat. China’s Shanghai Composite has risen by 0.48 per cent.

Back home, key equity benchmark indices resumed their record closing spree on the eve of May series derivative expiry on Thursday, with the Nifty and BSE Sensex ending with gains of 0.71 per cent and 0.84 per cent, respectively. The broader indices ended in the green as well, with Nifty Midcap and Smallcap adding 0.79 per cent and 0.38 per cent, respectively. Among sectoral indices, a mixed trend was seen with Nifty Financial Services and Nifty IT gaining the most, while Nifty Auto and Nifty Metal ending as top losers.

The US stocks failed to sustain early gains and turned volatile on Thursday to finally end the session with modest gains. The Dow Jones Industrial Average, Nasdaq composite and the S&P 500 Index added 0.2 per cent each. On the economic front, the first quarter US GDP growth was revised down to 3.1 per cent, a narrower decline than the street had expected. The labour department released a report showing a modest uptick in the first-time claims for US unemployment benefits in the week ended May 25.

The European equities finished in the positive terrain on Thursday. Germany’s benchmark DAX rose 0.54 per cent, France’s CAC 40 index advanced 0.51 per cent and the UK’s FTSE 100 gained 0.46 per cent.