Markets likely to start the July month with greasy conditions

Though the markets ended the last trading session of June month with a negative bias, overall, the month of June turned out to be a triumphant one as Nifty recorded gain of 7.5 per cent. On the flipside, broader indices Nifty Mid-cap and Nifty Small-cap registered a double-digit gain of 10.78 per cent and 15.29 per cent, respectively.  Further, since 2009, Nifty reported its best quarterly gains for April-June quarter.

Therefore, with this exultant performance in the month of June, market participants would be hoping even July month to be a cheerful one. However, going by the early trends in SGX Nifty, it is pointing towards a dull start for the Indian markets. At 7:50 AM SGX Nifty is trading almost 46.50 points down at 10,228.50 levels.  This could be ascribed to wobbly macro data. Some of the macros such as current account surplus were a positive. However, the sharp spike in fiscal deficit and the negative growth in core sector could send shudder down the spine of market participants. For today’s trading session, 10,190 would act as a crucial support level for the Nifty as move below this level could result into a breakdown of last four day’s range.

On account of positive cues from Wall Street overnight, Asian indices were trading in green on Wednesday. China’s Shanghai Composite is trading within arm’s length from its important psychological level of 3,000. Japan’s Nikkei is trading above 22,300 mark. While, Hong Kong’s Hang Seng is closed on account of Hong Kong Special Administrative Region Establishment Day.

Asian Markets

In line with global peers, domestic indices started off the session in exuberant manner. However, the rally grind to a halt as selling pressure emerged in the second half of trading session. As a result, indices not only gave away its early gains, but also ended the Tuesday’s session with modest losses. Both, Nifty and Sensex tumbled 0.1 per cent. Even the broader indices ended with losses as Nifty Mid-cap and Nifty Small-cap dipped 0.21 per cent and 0.61 per cent, respectively.  Having said that, the market breadth was skewed towards decliners as 1,075 stocks declined, whereas 780 stocks advanced. On the sectoral front, a mixed trend was witnessed with Nifty Auto and Nifty FMCG registering themselves as top gainers, and on the flipside, Nifty PSU Bank, Nifty Media and Nifty Pharma were the top losers.

On Tuesday, the US stock markets extended their gains as Consumer Confidence Index jumped to 98.1 in June, beating the estimates. During the day, Dow traded volatile as Boeing, a major constituent of Dow, took a hit. Said that, all the three major US stock indices recorded the best quarterly gains in multiple decades. At the closing bell, tech-heavy Nasdaq gained the most followed by S&P 500 and Dow.  European indices registered losses on Tuesday post UK economy contracted by more than expected between Jan-March, it recorded largest fall since 1979.  

US Markets

Europe Markets

Commodity