Global Events May Trigger Heightened Volatility

SGX Nifty has wobbled in early action, indicating that Dalal Street could be under pressure in early action on Wednesday following negative sentiments from the global peers. Also, expect heightened volatility as the markets are now just one day from September series F&O expiry. At the time of writing, the SGX Nifty was trading down by 40 points at 11,592 levels. 

Stocks in Asia were mostly lower on Wednesday following negative cues from Wall Street in overnight trade. Worries about political uncertainty were sparked off in the US after House Speaker Nancy Pelosi announced a formal impeachment proceeding against President Donald Trump. Hong Kong’s Hang Seng has slipped 1.25 per cent, Japan’s Nikkei 225 was down by 0.50 per cent and China’s Shanghai Composite declined 0.79 per cent.

Back home, markets took a breather on Tuesday, closing near the neutral line after two days of strong rally. The BSE Sensex added 7 points, while Nifty shed 12 points. Mixed trend was witnessed amongst the broader market indices, wherein Nifty Mid-Cap lost 0.66 per cent, while Nifty Small-Cap closed with gains of 0.04 per cent. On the sectoral front, Nifty IT and Nifty FMCG were top gainers. Meanwhile, Nifty PSU Bank, Nifty Metal and Nifty Bank were the top losers. The advance-decline ratio was in favour of decliners.

On Wall Street, stocks reversed early gains of Tuesday and ended the session in the red, following some disappointing domestic economic data and renewed fears over US-China trade relations as President Trump said he wouldn’t accept a bad trade deal with China. Meanwhile, the markets were also hot and bothered by comments from US House speaker Nancy Pelosi, which indicated possibility impeachment proceedings against President Trump. At the closing bell, the Dow lost 141 points, the S&P 500 declined 25 points and the tech-heavy Nasdaq Composite plummeted 119 points. 

The major European bourses ended Tuesday on a negative note, as a positive start gave away to afternoon selling. The sentiments turned negative following a host of mixed economic data. The UK’s FTSE 100 took the biggest hit as it declined by 0.47 per cent, while Germany’s DAX and France’s CAC 40 ended down by 0.29 and 0.04 per cent, respectively