Markets likely to start on a positive note

Key benchmark indices likely to make a mild positive start. The SGX Nifty suggests that the Nifty could open at 10,150 with modest gain of 19 points at the opening bell.  

Asian markets were trading mixed in early trades on Monday.  Hong Kong’s Hang Seng has gained 45 points, while Japan’s Nikkei 225 has slipped 41 points and China’s Shanghai Composite has dipped 2 points. 

Back home, it was a Black Friday for Indian shares as indices dropped sharply on the last trading session of the week and extended their downfall for the fourth straight session. Selling pressure was significant in broader indices as Nifty Mid-Cap tumbled 1.20% and Nifty Small-Cap nose-dived 1.55%. Sector-wise, all the sectoral indices ended in the red, with Nifty PSU Bank losing over 2%, followed by Nifty Media and Nifty Realty. At end of the day, Nifty lost 105 points to settle at 10,122 and the BSE Sensex settled below the psychological 33,000-mark.   

Stock indices in the US witnessed a roller coaster ride on Friday as, after falling sharply in the late morning trade, the stocks rebounded from their worst levels of the day to close with modest losses. The sell-off on Wall Street came after a report from ABC News said that former National Security Adviser Flynn is prepared to testify that the then presidential candidate Donald Trump directed him to make contact with the Russians. The Dow Jones Industrial Average snapped five days of winning streak to end lower by 41 points at 24,232. The S&P 500 shed 5 points to close at 2,642 and the Nasdaq slipped 26 points to finish at 6,848.  

Over the weekend, the highly controversial yet highly anticipated tax bill got through the US senate, paving the way for Donald Trump’s first big legislative victory.  The tax bill includes a sharp cut in rates of corporate taxation and temporary tax deferment for individuals. The eventual vote was 51-49 as the tax bill sailed through the Senate with the narrowest of margins. 

The start of the new month for the European market was a dismal one. The DAX of Germany plunged 1.25%, CAC 40 of France shed 1.04% and the FTSE 100 of UK dipped 0.36%.