Indian markets are likely to open flat

Indian capital markets witnessed a sell off trend in Thursday’s trading session. Nifty was able to sustain level of 8550. The BSE Sensex decreased 205.37 points or 0.74% quoting 27710.52; and Nifty also dropped by 55.75 points or 0.65% quoting 8510.10.  All of the sectoral indices traded in red except FMCG and IT.

Wall Street traded negative on Thursday after weak opening of European markets. The Dow Jones decreased by 0.42% to 18517. The S&P 500 also reduced by 0.36 per cent, quoting 2165. U.S. benchmark crude, WTI increased 0.06% to USD 44.81; while Brent crude, the international standard, rose by 0.32% to USD 46.35.

During ECB meet held on Thursday evening, Draghi kept interest rates unchanged after fallout of BREXIT. European capital markets remained mixed on July 21. Germany's main index, the DAX, traded up by 0.14% to 10156 along with France's CAC 40, which reduced by 0.08% to 4376. Britain's FTSE 100 declined by 0.43% quoting 6729.

Markets in Asia are following global cues and are trading weak during the morning session on Friday. The Shanghai Composite index has decreased by 0.34%. Japan’s Nikkei 225 index has dropped by 0.95%. Australia’s S&P/ASX 200 Index has declined by 0.22%; while New Zealand’s S&P/NZX 50 Index has risen by 0.24%. South Korea’s KOSPI traded up by just 0.02%. The Hang Seng Index has reduced by 0.46%.

While on domestic front, A SGX Nifty index future for July series is trading up by 6.5 points at 8529.5.The result season of Q1FY17 is ongoing. The asset quality of banks is a concern for Indian capital markets. Indian markets are likely to open flat.