Flat to positive start likely amid negative cues from Asian peers

The Indian markets are expected to begin the week on a flat to positive note as the SGX Nifty was trading higher by 24 points at 11,571 level. There would be some reaction to the CPI inflation and the IIP numbers, which came on Friday post-market hours. While inflation was slightly higher, though it remained well within the RBI’s comfort zone, the IIP growth fell to 3.1 per cent again, raising hopes that the RBI would cut rates in its August policy.

The stocks in Asia were lower on Monday after China’s economic growth slowed to 6.2 per cent in the Q2 from a year ago, the weakest rate in 27 years, as the country’s trade war with the US took its toll. China’s Shanghai Composite index was down about a per cent and Hong Kong’s Hang Seng was lower by 0.57 per cent.  The Japanese stock market was closed for a holiday.

Back home, Friday turned out to be a thrilling ride for the market participants, as the last hour sell-off in the indices played a spoilsport for the bulls. The BSE Sensex and Nifty ended lower with losses of 86 and 30 points, respectively. The indices made a sober start and traded in a capped range in the morning session. However, the bulls gathered some momentum and the indices went on to register the day’s high. However, in the last leg of trading, the indices pared all of their gains and dipped into the negative terrain. Meanwhile, the broader indices witnessed decent buying interest with Nifty Midcap and Smallcap registering gains of 0.46 per cent and 0.33 per cent, thereby outperforming their larger peers. Talking about the sectoral performance, Nifty Metal and Nifty Realty were top gainers; while on the flip side, Nifty Private Bank and Nifty Bank were top losers.

In the US, the final trading session of the trading week ended on a cheerful note with major indices ending the session at new record closing highs. The Dow jumped 244 points, the S&P 500 surged 14 points and the tech-heavy Nasdaq rose 48 points.

The European markets closed Friday’s session on a mixed note. France’s CAC 40 advanced 0.38 per cent, while Germany’s DAX dipped 0.07 per cent and UK’s FTSE 100 shed 0.05 per cent.