Markets may begin on muted note tracking subdued cues from Asian peers

Indian stock markets are seen opening on a flat note tracking dull cues from Asian markets. The trading of Nifty 50 index future on the Singapore stock exchanges indicates that Nifty could rise 2 points at the opening bell. It would be a busy day on the earnings front with companies such as Atul, Bajaj Auto, Bata India, Ceat, Havells India, HDFC Standard Life Insurance, Kansai Nerolac Paints, L&T Finance Holding, MCX and Wipro will announce their earnings today. Apart from earnings, market participants will keep an eye on the big event of no-confidence motion tabled by opposition parties against the Modi’s government will be debated in Lok Sabha today.  

Most of the Asian markets are trading lower on the last trading day of the week amid profit-booking in the US markets and the US President Donald Trump’s criticism of the Federal Reserve. Japan’s Nikkei 225 has shed 0.50 per cent, Hong Kong’s Hang Seng index has dipped 0.07 per cent and China’s Shanghai Composite has lost 0.16 per cent.  

Back home, the key indices settled with modest losses after a volatile trading session on Thursday. The NSE Nifty lost 23 points to close at 10,957 and the BSE Sensex dipped 22 points to end at 36,351. The selling pressure continued in the broader market and the Nifty Mid-cap and Small-cap dropped 0.72 per cent and 0.60 per cent, respectively. Talking about sectoral performance, excluding Nifty FMCG and Nifty PSU Bank, all other indices ended lower with Nifty Pharma and Nifty IT being the worst hit.  
   
The US stocks ended Thursday’s session in the negative terrain. Profit-taking was seen on Wall Street after the recent run-up and traders were also seen reacting to interview of President Donald Trump to CNBC where he told CNBC he is ‘not thrilled’ with interest rate hikes by Federal Reserve. On the economic front, the US Labour Department reported that initial jobless claims had unexpectedly dropped to their lowest level in almost five decades in the week ended July 14. Separately, the Philly Fed manufacturing index rose in July to 25.7, from 19.9 in the prior month. The Dow lost 135 points to close at 25,065, the S&P 500 fell 11 points to finish at 2,804 and the Nasdaq slipped 29 points to end at 7,825.  

Majority of European stock markets ended Thursday’s session in the red. Though corporate earnings took centre-stage, the earnings failed to impress the market participants as these came in mixed and the mining stocks were under pressure due to a pullback in metal prices. The DAX of Germany weakened by 0.62 per cent, CAC 40 of France decreased 0.56 per cent, while UK’s FTSE 100 added 0.10 per cent.