Markets may open on a positive note tracking cues from Asian peers
Indian equity benchmarks are expected to witness a mildly positive opening as cues from Asian peers are supportive. However, the bigger question is will the market be able to sustain the initial gains or will it be just a dead cat bounce. The SGX Nifty is indicating that the Nifty could open marginally positive around 10,214 at the opening bell.
There was a mild hiccup on the political front on the issue of conferring ‘Special Status’ to Andhra Pradesh. On this issue, Arun Jaitely has affirmed that while the government may be willing to consider more funds to the state, giving special status may not be feasible at this point of time. In view of this announcement, the two TDP ministers in the Modi government were instructed to quit the Union cabinet by their party leader and Andhra Pradesh Chief Minister N Chandrababu Naidu.
The equity markets in Asia were broadly higher on Thursday, with Hong Kong’s Hang Seng leading the gains. Hang Seng has surged 1.07%, followed by Japan’s benchmark index Nikkei 225 which has gained 0.82%, while China’s Shanghai Composite is trading flat.
Back home, extending their southward journey for the sixth straight session, Indian equity benchmarks ended Wednesday’s trade with a cut of nearly 1 per cent. The BSE Sensex settled at 33,033, with a loss of 284 points and the Nifty settled below its crucial 10,200-mark, with loss of 95 points. Among sectors, Nifty FMCG emerged as the sole gainer, while Nifty PSU Bank ended as a top loser. Selling was severe in broader indices as Nifty Mid-cap and Small-cap slumped 1.58% and 2.22%, respectively.
In the US, the S&P 500 and the Dow Jones Industrial Average closed with modest losses on Wednesday as the resignation of top White House economic adviser Gary Cohn sent jitters down the markets' spine. However, the tech-heavy Nasdaq bucked the trend to extend its northward movement for a fourth successive session. The Dow Jones Industrial Average slid 83 points to close at 24,801, recouping from the loss of more than 300 points earlier. The S&P 500 lost one point to settle at 2,727, while the Nasdaq Composite index rose 25 points to end the day at 7,397.
After the initial setback, European stock markets clawed back losses on Wednesday. Germany’s DAX rose 1.09%, CAC 40 of France added 0.34% and the FTSE 100 of the UK gained 0.16%.