Markets to open on a flat to a positive note
Asian indices, which are mostly trading in the red didn’t stimulate despite rally in the US market overnight. A new report suggested that Moderna’s announcement of positive results in May didn’t include much detail and this might have led the US stock index futures trading in red. Having said that, early trends in SGX Nifty is signifying a flat to a positive start. At 7:58 AM SGX Nifty is trading up by 10 points at 10,652.
The markets are not able to hold their early gains from past few trading sessions. Southwards, Nifty has a crucial support at 10,551 level, which is 61.8 per cent Fibonacci retracement. Do watch out for these levels as a move below these levels might drag Nifty further down.
On the earnings front, Infosys earnings exceeded the market expectations and gave better guidance even in such an uncertain environment. This will aid IT sector to continue its upward movement. Further, today major companies including Bajaj Consumer Care, L&T Technology Services and CYIENT are slated to report their earnings for the first quarter of FY21.
Despite a strong closing on Wall Street overnight, Asian indices are trading in red on Wednesday. Hong Kong’s Hang Seng and China’s Shanghai Composite, are down by 0.60 per cent and 0.36 per cent, respectively. Whereas, Japan’s Nikkei 225 descended by 0.37 per cent.
Asian Markets
|
Asia Opening
|
Price
|
Change
|
% Change
|
|
Nikkei 225
|
22,860.05
|
-85.45
|
-0.37
|
|
Hang Seng
|
25,329.88
|
-151.70
|
-0.60
|
|
Shanghai
|
3,349.25
|
-12.05
|
-0.36
|
|
SGX Nifty
|
10,652.50
|
10.50
|
0.00
|
On account of optimistic cues from global peers, domestic benchmark indices on Wednesday, started the session on a positive note. Said that, it was followed by a massive selloff in Reliance Industries, which is India’s largest company by market cap. In the last hour of trade, the markets gave up most of its day’s gains to end flat at closing bell. Nifty ended mere 11 points higher to close at 10,618, whereas Sensex rose 19 points to close at 36,052. The market breadth of the broader market was tilted the favour of decliners and saw a decline in Nifty Midcap 100 and Nifty Smallcap 100 for the fourth consecutive session. Nifty Midcap 100 and Nifty Smallcap 100 were down by 0.7 per cent and 0.1 per cent, respectively. On sectoral front, it was a mixed bag. IT was the biggest gainer as it was up by 5.2 per cent post reporting of strong earnings from Wipro and Infosys. Pharma, FMCG, Auto and Metals also ended the session in marginal green. On the other hand, Media, Realty and Banks were the top losers.
On Wednesday, stocks ended higher for the fourth consecutive session on Wall Street. This was as a result of numerous positive news coming from every corner of the economy. Firstly, the visible signs of progress towards a coronavirus vaccine, aided investors to overcome the concerns of rising COVID-19 cases. Secondly, Goldman Sachs group posted better than expected numbers to beat analysts’ expectations for the second quarter. On economic front, the US industrial production climbed 5.4 per cent in June, which is the largest monthly jump since 1959.
US Markets
|
US Closed
|
Price
|
Change
|
% Change
|
|
Dow
|
26,870.10
|
227.51
|
0.85
|
|
S&P 500
|
3,226.56
|
29.04
|
0.91
|
|
Nasdaq
|
10,550.49
|
61.92
|
0.59
|
|
Global Dow
|
2,960.31
|
38.13
|
1.30
|
European Market
|
Europe Closed
|
Price
|
Change
|
% Change
|
|
DAX
|
12930.98
|
233.62
|
1.84%
|
|
Euro Stoxx 600
|
373.87
|
6.47
|
1.76%
|
|
FTSE 100
|
6292.65
|
112.90
|
1.83%
|
|
CAC 40
|
5108.98
|
101.52
|
2.03%
|
|
IBEX 35
|
7487.60
|
135.60
|
1.84%
|
|
SMI
|
10460.01
|
200.51
|
1.95%
|
Commodity
|
Commodity
|
Price
|
Change
|
% Change
|
|
Gold
|
1,812.90
|
-0.50
|
0.03
|
|
Brent Crude
|
43.62
|
0.52
|
1.21
|