Markets may open flat tracking mixed cues from global peers
Indian markets are expected to open flat with a negative bias as cues from global peers are mixed. The SGX Nifty is indicating that the Nifty could open marginally negative around 10,230 at the opening bell. Since Nifty has breached its very crucial level of 10,300, we believe that the undertone of the market has shifted from 'buy on dips' to 'sell on rise'.
Equity markets lacked directions in Asia on Wednesday, as was the case overnight in the US stock markets. Japan’s benchmark Nikkei 225 has lost 22 points, Hong Kong’s Hang Seng has slipped 21 points, while China’s Shanghai Composite has added 16 points.
Back home, Tuesday turned out to be terrible day of trade for Indian equity benchmarks, with frontline indices dropping over one per cent to end below their crucial 33,500 (Sensex) and 10,300 (Nifty) levels. After making an optimistic start, domestic indices extended their gains in the first half of the trading session. However, the second half turned out awful as markets witnessed fierce selling pressure. Barring Nifty Media, all sectors ended on a negative note. Major selling pressure was seen in Nifty PSU Bank and Nifty Realty.
The US stocks indices eked out modest gains on Tuesday, with the tech-laden Nasdaq leading the pack. The Dow Jones Industrial Average added 9 points to close at 24,884, the S&P 500 gained 7 points to finish at 2,728 and the Nasdaq Composite Index advanced 41 points to end at 7,372. The US stocks showed lack of direction over the course of the session after a report from media said Donald Trump’s top economic adviser Gary Cohn will resign if planned tariffs on steel and aluminium imports are implemented.
European stock markets on Tuesday rebounded from six month lows as the attention shifted from politics to deal making and earnings. Germany’s DAX climbed 0.19%, CAC 40 of France gained 0.06% and UK's FTSE 100 rose 0.43%. Smurfit Kappa shares jumped 19% after the packaging company rejected a bid approach.