Markets to Show Good Buying Interest on Global Cues

The market continued to be under selling pressure as it is not finding any good trigger for its upward march. As we had mentioned in the morning report, the market opened flattish with positive bias and showed range bound trades during the trading session. Almost all the sectoral indices on BSE closed in red. The mid and small cap stocks too followed the broad market and the respective indices closed in the red.

The euro on fell further against the dollar, at its lowest since April 2003. The euro came under significant pressure as the US Fed looks ready to raise interest rates and the European Central Bank this week launched a 1.1 trillion euro asset buying program. However, the equity market reacted positively to this news and surged again to multi year highs after fall during earlier in the week. The French CAC 40 and German DAX surged 2.37 and 2.66 per cent at 4998 and 11806 on Wednesday. The UK markets too showed some buying interest after its benchmark index FTSE 100 losing more than 2.5 per cent in a single trading session. The FTSE 100 closed higher, marginally up by 0.28 per cent.

However, the US markets closed further lower as the equity markets investors started discounting the Fed rate cut and further strength in the US Dollar against major world currencies. After, the Dow Jones index’s worst one day point drop in last five months, the Dow Jones Industrial Average closed further lower by 0.16 per cent yesterday. The S&P 500 and Nasdaq too closed in marginal red with 0.19 and 0.20 per cent losses on bourses respectively.

The Japanese and Australian markets were trading in positive today morning, taking positive cues from the dollar strengthening. The exports in these markets are expected to benefit from the strong dollar in US. The Japanese Nikkei 225 was trading higher by 0.80 per cent and the Australian ASX 200 was too trading higher by 0.86 per cent in the morning trades. However, the Hong Kong shares were trading flat as the negative economic data flash for the Chinese economy. The Hang Seng index was trading little higher by 0.14 per cnet. 

The SGX Nifty was trading flat with 0.11 per cent gains today morning. However, we expect good amount of buying interest in the market during today’s trading session.