Markets to remain volatile amid weak global cues and F&O expiry
After range bound volatility throughout the day Indian benchmark indices closed marginally up. Nifty closed at 8650; and Sensex retained 28000 mark. Pharma, Media and Energy gained more than a per cent. Aurobindo Pharma has surged the most with 6.9 per cent gains after posting positive Q1 numbers.
US markets retreated, being dragged down by the Healthcare and Mining stocks. Healthcare stocks tumbled when Hillary Clinton raised a query about rising costs of the medical treatments. While Mining stocks tumbled when Copper and Gold prices slumped. Meanwhile Oil prices tumbled 3 per cent owing to oversupply. Dow Jones, S&P500 and Nasdaq declined 0.35, 0.52 and 0.81 per cent respectively.
European markets rose for the third day driven by the banking stocks. Markets saw volatility ahead of Janet Yellen’s speech at Jackson Hole. DAX rose 0.28%, and the CAC-40 surged 0.32%. However, FTSE 100 dropped 0.48 per cent amid fall in Glencore stock, its mining major.
Asian markets are mostly lower followed by the negative closing in the US markets. Nikkei is 0.27 per cent down; while Hang Seng is trading flat. Shanghai Composite has tumbled the most, losing 0.75 per cent. Australia’s S&P/ASX 200 is flat; while New Zealand’s S&P/NZX 50 is 0.31 per cent up. South Korea’s KOSPI is flat to positive.
SGX Nifty is trading marginally up at 8674.5 levels. Markets have also recovered in the afternoon session on the previous trading day. We may see a positive opening but markets may remain subdued tracking Aug F&O expiry and pessimism in global indices.