Markets Expect To Show Some Recovery

The domestic market continues to slide down despite of gap up start in early trade on Monday. The Indian market experienced another sell off on the 6th consecutive trading session. The Sensex ended at 15-month low while Nifty was at 14-month low at closing. The Sensex ended down 1.2 percent at 24893.81 and the Nifty closed near days low at 7558.80 levels with loss of 96.25 points. Market breadth for the Nifty Index remains weak as the advance decline ratio ended on the negative side today. Only seven stocks closed with green mark whereas, and rest of the 43 stocks closed with red mark.

On European market front, the markets recovered after nervousness from Chinese economy and US rate hike expectations. The trading volumes were lower as the US equity markets were closed yesterday for the Labor Day holiday. The UK’s FTSE 100, Germany’s DAX and French CAC 40 closed with gains of 0.52, 0.70 and 0.59 per cent respectively.

The Asian markets showed mixed market opening on Tuesday morning. The Hang Seng showed some gains of 0.28 per cent in early trades recovering from straight six day slide. However, the Japanese markets continue to slip further on Seventh trading session as the Nikkie 225 was trading lower by 0.67 per cent in the morning. However, the Australian shares were strong and ASX 200 showed 1 per cent gains on the bourses.

The premarket barometer for the Indian markets, SGX Nifty was trading half per cent up in the morning. We expect the market to remain positive but with marginal gains.