Taking cues from Asian peers, SGX Nifty indicates positive start!
The early indication from SGX Nifty indicates that the bulls are likely to make a comeback on D-Street after taking a pause on Tuesday amid positive cues from Asian peers. SGX Nifty is trading up by 26 points at 11,269.50 levels.
Despite a positive opening, we would reiterate our readers to adopt a cautious stance as the level of 11,305 is a big hurdle for Nifty and until & unless this level is not pierced, do not indulge in aggressive buying.
In the economic calendar, infrastructure output (August), current account (Q2), and external debt (Q2) are scheduled to be announced later today.
The majority of the Asian markets were trading in the green on Wednesday despite elevated US political ambiguity as the presidential election looms uncertainty and the market participants braced for the first presidential debate in the US. Hong Kong’s Hang Seng has gained over 400 points to 23,746. China’s Shanghai Composite advanced 0.53 per cent as China’s manufacturing & services industries continued to show recovery in September. While Nikkei 225 was hovering around the neutral line, in economic news, Japan’s Industrial Output rose for the third straight month in August.
Indian markets got off to a solid start but somehow, failed to sustain at higher levels, and thereafter, it turned volatile. Finally, it ended the day with a minuscule loss. Nifty and Sensex slid 0.05 per cent and 0.02 per cent, respectively. The broader indices too ended in red with Nifty Mid-cap and Small-cap losing 0.15 per cent and 0.31 per cent, respectively. On the sectoral front, the majority of the sectors ended with losses wherein Nifty PSU Bank and Nifty FMCG were the top losers, while Nifty Metal and Nifty Auto were the top gainers. Market breadth was in favour of losers as 1,047 stocks closed with loss while 817 stocks closed in green.
Wall Street snapped its three-day winning streak on Tuesday as the market participants turned watchful ahead of the Presidential debate and also, the rising Coronavirus cases in New York City prompted traders to take the profit off the table.
In economic news, the Consumer Confidence Index soared to a six-month high and well above the estimates. At close, Dow dropped 131 points to 27,452, S&P 500 lost 16 points to 3,335 and Nasdaq slipped 32 points to 11,085. Meanwhile, indices in the European region ended the day with losses as uncertainty about the Brexit deal and the resurgence of new Coronavirus cases in the region weighed on sentiments.