Markets may begin on a cautious note tracking mixed cues from Asian peers
Indian indices may open the session on a cautious note post the Holi festival and ahead of the weekend and an expiry next week. Also, the cues from the Asian peers are not encouraging. At the time of writing, the SGX Nifty was marginally down by 7 points at 11,585. The data on India’s foreign exchange reserves for the week ended March 15 will be released today.
The stocks in Asia are trading mixed on Friday shrugging off positive sentiments on the Wall Street overnight as market participants remained concerned about the US Federal Reserve’s outlook on interest rates due to challenging economic conditions. Moreover, market participants are wary that Brexit could become messy and concerned about the continuing ambiguity on the US-China trade deal. Hong Kong’s Hang Seng index has added 0.11 per cent, while China’s Shanghai Composite index has shed 0.52 per cent and the Japanese stock market Nikkei has declined 0.22 per cent.
Back home, the benchmark indices oscillated within a defined range on Wednesday as traders were reluctant to take any significant positions ahead of the Holi festival holiday due to which the session ended flat. The BSE ended the day with a miniscule gain of 0.06 per cent, while Nifty dipped lower by 0.10 per cent. Among the broader market indices, both NSE Midcap and Small-cap underperformed the benchmark indices and ended with losses of 0.50 per cent and 0.30 per cent, respectively. The sectoral indices demonstrated a mixed trend, with Nifty Realty surging over 2.4 per cent, while Nifty Media plunging by over 3 per cent.
The stocks on Wall Street got off to a tepid start on Thursday, but thereafter advanced at a strong pace for a majority part of the day. Technology stocks were buzzing on the Wall Street. The upmove on Wall Street came on the back of some upbeat economic data. The weekly initial jobless claims fell by 9,000 to 221,000 for the latest reported week. Meanwhile, the Conference Board’s Index of Leading Indicators for February increased 0.2 per cent MoM, which was above the economists' consensus. The Dow Jones Industrial Average surged 0.84 per cent, the Nasdaq Composite index jumped 1.42 per cent and S&P 500 index settled 1.09 per cent higher.
European indices ended Thursday’s session on a mixed note. The Bank of England (BoE) decided to hold interest rates steady amidst rising uncertainty about Brexit. The FTSE 100 of the UK rose 0.88 per cent, the DAX of Germany slipped 0.46 per cent and the CAC 40 of France ended lower 0.07 per cent.