Markets to open flat to negative; may recover
Indian markets witnessed a second straight fall, whereun the benchmark indices closed marginally lower, being dragged down by IT, PSU Banks and Realty sectors. Tata Motors and TATAMTRDVR surged against the markets amid positive Q1 numbers. Nifty hit below 8600 at 8572 and Sensex closed below 28000 at 27782. Midcap index closed positive with 0.17 per cent gains.
European markets surged on Friday ahead of Janet Yellen’s speech. French economy remained stagnant in Q2; while Germany rose to 10.2 per cent against expectations of 9.9 per cent. DAX rose 0.55%, and the CAC-40 surged 0.80%. FTSE 100 too closed 0.31 per cent up.
Janet Yellen’s speech at Jackson Hole suggested a rate hike by December. The vice chairman Fischer signaled that if the employment data continued to be strong coupled with positive economic numbers, then US may see a rate hike as early as September. Dow Jones & S&P500 declined 0.29 and 0.16 per cent respectively; while Nasdaq closed a little higher by 0.13 per cent.
On Aug 29, most Asian markets slid on comments from Janet Yellen, while Dollar held firm. However, Nikkei is 2.2 per cent up where Yen depreciated against resurgent Dollar. Hang Seng is 0.5 per cent down. Shanghai composite is flat to negative. Australia’s S&P/ASX 200 is 1 per cent down; while New Zealand’s S&P/NZX 50 is flat to negative. South Korea’s KOSPI is 0.45 per cent down.
SGX Nifty is trading marginally down at 8600 levels. Markets have been making lower tops and lower bottoms since last two sessions and hence we may see continuation of the same. Markets may see recovery later in the day amid short covering.