Positive opening likely despite pessimistic global cues

Despite the global markets remaining vulnerable by amplified pessimism regarding a solution to the US-China trade war, the Indian markets are expected to open the session on a positive note. At the time of writing, the SGX Nifty was trading higher by 55 points at 11,734. The quarterly numbers on tap are Bata India, Dish TV, Heidelberg, IDFC, IGL, JSW Steel, NCC and REC.

Asian markets are seen trading mixed on the final trading session of the week as investors seem concerned about the trade worries and global growth.  The Japanese stock index Nikkei 225 has shed 0.67 per cent, Hong Kong’s Hang Seng has gained 0.26 per cent and China’s Shanghai Composite index is trading flat with a positive bias.  

Back home, the start to the day was miraculous, lifted by the vote count leads that showed NDA getting a momentous majority. The BSE Sensex touched 40,000 and the crossed Nifty 12,000 mark and just when the market participants started celebrating this milestone and giving high fives, there came a wild twist in the tale. Soon the mammoth gain on the key indices started to trim and, as the day progressed, it just got worse with Nifty coming off nearly 400 points, while the Sensex shed over 1400 points from the day’s high. At the end, Nifty ended the day below the 11,700 mark and BSE Sensex settled below the 39,000 mark. The broader indices ended in the negative terrain, with Nifty Midcap and Smallcap registering losses of 0.17 per cent and 0.20 per cent, respectively. Majority of the sectoral indices ended the session in the red, with Nifty Media and Nifty Realty being the only gainers, while Nifty FMCG and Nifty Metal were the top losers.

There was all-round selling in the US stocks amid signs of worsening of US-China trade war and some disappointing economic data. The tech-heavy Nasdaq ended the session at its lowest closing level in about two months. The Dow jones Industrial Average lost 1.1 per cent and the S&P 500 corrected 1.2 per cent, while Nasdaq plunged 1.6 per cent. On the economic front, jobless claims surprisingly dipped and new home sales dropped.  

The European equities were sharply lower in Thursday’s session as worries heightened about the growing tensions between the US and China. Furthermore, Eurozone manufacturing activity contracted and uncertainty over Brexit rattled investors’ faith. Germany’s benchmark DAX slumped 1.78 per cent, UK’s FTSE ended down 1.41 per cent and France’s CAC 40 index plunged 1.81 per cent.