Flat start for the markets

In the last three trading sessions, the markets have managed to reach new heights and set new record-closing highs in each of the session. Moreover, the Nifty closed in the top quartile of the day’s range for the third consecutive day. So the bulls will try to end the week on a high note. However, at the same time, market participants will be itching to book profits after the quick up-move, seen in the last three trading sessions and go home on the weekend with a peaceful mind. Let us wait and watch how the days turn out to be on D-Street to reach any conclusion but if the early trend on the SGX Nifty is anything to go by, the benchmark index may open the session on a flat note with an uptick of 7 points at 12,280 mark.

The Asian markets are trading mixed on Friday, with Japan’s Nikkei 225 trading down by 0.28 per cent while Hong Kong’s Hang Seng and China’s Shanghai Composite rising up by 0.26 and 0.14 per cent, respectively.

Back home, after an initial set back, the key benchmark indices continued their advancement for the third straight day on Thursday and closed at record highs. The Nifty closed above 0.31 per cent at 12,260 and the BSE Sensex closed at 41,674, up by 0.28 per cent. The broader market was not able to catch up with large caps, as Nifty Midcap edged up 0.07 per cent while Nifty Smallcap dipped 0.02 per cent. On the sectoral front, Nifty Auto was the top gainer followed by Nifty IT while on flipside, Nifty Financial Service and Nifty Pharma were down by 0.32 per cent and 0.22 per cent, respectively.

In the US, the Santa Claus rally continued, as the major indices ended the session at new record closing highs. The upbeat move occurred despite a few lackluster economic reports, including the disappointing current home sales and higher than expected jobless claims. The Dow closed up 0.50 per cent, the S&P was up 0.50 per cent at close, and the Nasdaq rose much sharply, closing up by almost 0.70 per cent on Thursday. Meanwhile, the European indices ended the session on a mixed note. The Bank of England decided to keep its benchmark interest rate at 0.75 per cent, as expected, and decided to keep its asset purchases steady. The Riksbank, the Sweden’s central bank, lifted the repo rate to 0 per cent from -0.25 per cent.