Subdued start likely on cues from Asian peers

Indian markets are likely to make a tepid start following subdued cues from Asian peers. The SGX Nifty is indicating that Nifty may open marginally lower at 10,539.   

Asian equity markets struggled for direction on Tuesday ahead of Chinese economic data. Japan’s benchmark index Nikkei 225 has added 2 points and Hong Kong’s Hang Seng has risen 31 points, while China’s Shanghai Composite is trading flat.  

Back home, key benchmark indices rallied on Monday, booking an eighth consecutive gain in a row after investors shook off initial anxieties prompted by the US attacks on Syria. The Nifty ended above important psychological mark of 10,500, up by 48 points and the BSE Sensex rose 113 points to close at the 34,305-mark. The broader indices outperformed the benchmark indices with Nifty Mid-cap and Small-cap ending higher by 0.80% and 0.58%, respectively. Sector-wise, Nifty Realty and Nifty Pharma gained 1.63% and 1.56%, respectively. The economic data released indicated that the March wholesale price inflation (WPI) came in at 2.47% as against 2.48% month-on-month basis.   

Monday turned out to be a marvellous trading session for the US stock markets as all three major averages ended the day firmly in the positive territory as earnings season pointed to strong growth even as the war fears receded. The Dow Jones Industrial Average jumped 213 points to 24,573, the Nasdaq surged 50 points to 7,156 and the S&P 500 gained 22 points to 2,678.  

The European stocks finished the first day of the new trading week in the red as media reports suggesting US intention to impose new economic sanctions on Russia put investors in a cautious mood.  The DAX of Germany lost 0.41%, CAC 40 of France slipped 0.04% and the FTSE 100 of UK dropped 0.91%.