A flat opening likely as markets consolidate

In early action, the Nifty future traded on the Singapore Exchange known as SGX Nifty is seen hovering near the flat line, which is in line with our call of the day that the benchmark indices may consolidate and struggle for direction as markets continued to remain overbought on key indicators. At the time of writing, the SGX Nifty was trading 5 points higher at 11,390.

Asian markets were seen advancing on Friday as market participants reacted to a vote from the lawmakers which meant that the UK may not leave the European Union on 29 March as previously planned. Also, all eyes will be on the Japan’s Central Bank as it is set to deliver its monetary policy decision later in the day. China’s Shanghai Composite index has surged 1.18 per cent, the Japanese stock market Nikkei has climbed 1.06 per cent and Hong Kong’s Hang Seng index has gained 0.48 per cent.

Back home, key equity benchmark indices settled Thursday session just above the neutral line. After opening with modest gains, traders preferred to take profits off the table. The indices pared all of their initial gains and, thereafter, they wavered back and forth in a capped range and ended the day flat. The Nifty ended up by 0.01 per cent at 11,343 and BSE Sensex rose 0.01 per cent to close at 37,755. The broader markets ended on a mixed note, with Nifty Midcap adding 0.08 per cent, while Nifty Small-cap dipping 0.04 per cent. Talking about sectoral performance, Nifty Realty and Nifty Pharma ended as top gainers, while Nifty IT and Nifty Auto ended as top losers.

The US stocks lacked clear direction on Thursday as major indices finished mixed near the neutral line. Uncertainty on Brexit and murmur that President Trump and President Xi of China have pushed back any meeting until April weighed on the market sentiments. All said and done, the Dow closed 7 points higher, Nasdaq 13 points down and S&P 500 2 points down.

European markets rallied on Thursday. On the Brexit front, the British parliament voted in favour of delaying the Brexit process, acknowledging that more time is needed to break the deadlock over Britain’s departure from the EU. The DAX of Germany closed higher by 0.13 per cent and the CAC 40 soared 0.82 per cent and the FTSE 100 of the UK gained 0.82 per cent.