Positive global cues may see markets opening in the green
Indian markets are likely to witness a positive opening as cues from global peers are supportive. The SGX Nifty is indicating that the Nifty could open higher by 39 points around 10,399 at the opening bell.
Market across Asia rebounded on Tuesday after plunging last week, helped by gains on Wall Street and investors hunting for bargains. Japan’s benchmark Nikkei 225 has climbed 2.07%. The index had seen a drop of about 6% in its recent losing streak amid worries about US protectionism and the strengthening of yen. Hong Kong’s Hang Seng has risen 1.24%, while China’s Shanghai Composite is trading flat.
Back home, the key equity indices tumbled for the fourth consecutive session on Monday, dragged down by metal stocks on fear of a global trade war after US President Donald Trump announced the proposal to impose tariffs on steel and aluminium imports. The BSE Sensex slipped below its important psychological 34,000-mark as it ended lower by 0.88% and the Nifty slipped below 10,400 as it ended down by 0.95%. The broader markets too were in a bearish form, with the Mid-cap index falling 0.95% and the Small-cap dipping 1.07%. Among sectors, Nifty IT and Nifty PSU Bank ended in the green.
The US stocks edged higher on Monday, with major indices closing firmly in the positive terrain. In a post on Twitter, President Donald Trump indicated that the tariffs on steel and aluminium would only be removed if the US negotiates a ‘new & fair’ NAFTA agreement. The Dow Jones Industrial Average surged 337 points to 24,875, Nasdaq jumped 73 points to 7,331 and the S&P 500 spiked 30 points to 2,721.
Most of the European markets ended the first trading session of the week in the green. On the other hand, the Italian stock market was an exception as the preliminary vote count pointed to a hung parliament. Germany’s DAX rose 1.49%, CAC 40 of France gained 0.60% and the UK FTSE 100 added 0.65%.