Subdued start likely amid negative cues from Asian peers

In early action, SGX Nifty is seen trading slightly below the dotted line after trade uncertainties between the US and China are back in the headlines. The US President Donald Trump commented that the trade talks between the US and China still had a long way to go. At the time of writing, the SGX Nifty was trading down by 13 points at the 11,633 level. Results to watch out for include Mindtree, Wipro, Tata Elxsi and Yes Bank.

Asian markets were trading lower on Wednesday morning following negative cues from the Wall Street overnight amid renewed uncertainty about the US and China trade talks. The Japanese stock index Nikkei 225 was trading lower by 0.38 per cent, China’s Shanghai Composite index had dipped 0.06 per cent and Hong Kong’s Hang Seng has shed 0.29 per cent.

Back home, Tuesday turned out to be a terrific day for the bulls as key benchmark indices ended the session with gains of over half a per cent. The Nifty and BSE Sensex settled at 11,662 and 39,131, respectively. The broader indices ended in the green as well with Nifty Midcap and Smallcap ending higher by 0.75 per cent and 0.09 per cent, respectively. Talking about the sectoral performance, barring Nifty IT and Nifty Media, all other indices ended with gains, with Nifty Realty, Nifty PSU Bank and Nifty Pharma being top gainers.

The US equity markets ended Tuesday’s session marginally lower. Selling pressure was evident on the Wall Street after the somewhat dampening comment on US-China trade talks by US President Donald Trump. On the economic front, retail sales were higher than expected for the month of June. In the end, the Dow ended lower down by 24 points, the S&P 500 fell 10 points and the tech-heavy Nasdaq slipped 35 points.  

The European markets surged higher on Tuesday. Germany’s DAX advanced 0.35 per cent, France’s CAC 40 rose 0.65 per cent and UK’s FTSE 100 gained 0.60 per cent. The Eurozone’s balance of trade for May came in at a surplus of 23 billion euros on the back of 1.3 per cent m/m growth in exports and a 1.1 per cent m/m decline in imports. The UK unemployment rate remained unchanged at 3.8 per cent in three months to May and wages grew at the fastest pace in 11 years.