Tepid start likely amid subdued global cues

The Indian markets are expected to start the week near the dotted line as SGX Nifty indicated Nifty to open around 11,759 level, up by 5 points. Volatility is likely stay elevated for the week on the back of F&O expiry during the week as well as forthcoming G-20 Summit. Investors will also keep an eye on the Middle East, where the geopolitical situation is worsening by the day.

Majority of the markets in Asia are seen trading in the red terrain on Monday. The Japanese stock index Nikkei 225 has declined 0.21 per cent, Hong Kong’s Hang Seng has dipped 0.27 per cent and the Kospi is marginally down.

Back home, markets corrected sharply on the final trading session of the week after witnessing a scintillating rally in the previous trading session. The reports of tension between the US and Iran resulted in a surge of crude oil price, which turned the market participants anxious as high crude oil prices pose a clear risk to India’s fiscal health. The Nifty index dropped 108 points to 11,724 level and the BSE Sensex plunged 407 points to 39,194 level. On a weekly basis, Nifty was down by 0.84 per cent and BSE Sensex was lower by 0.65 per cent. The broader market indices were resilient as they posted minuscule losses of 0.08 per cent and 0.25 per cent, respectively, thereby outperforming the frontline gauges. On the sectoral front, Nifty PSU Bank was the top gainer, while Nifty Pharma, Nifty Media and Nifty Auto were top losers. 

The US stocks were seen bouncing back and forth near the neutral line and ended the Friday’s session with marginal losses. The Dow shed 34 points to close at 26,719, the Nasdaq lost 20 points to finish at 8,032 and the S&P 500 index dipped 4 points to end at 2,951.

A majority of the European markets ended Friday’s session in the red. Germany’s DAX and France’s CAC 40 indices ended down by 0.13 per cent each and UK’s FTSE 100 declined by 0.23 per cent.