The Asian markets have opened on a positive note after US markets ended in the green and The GIFT Nifty indicates a flat opening for the Indian indices.
The US markets kick started the final week of trading on a positive note. The Dow Jones Industrial Average ended up 213.08 points, or 0.62%, to close at 34,559.98. The S&P 500 shut shop at 4,433.31, up 0.63% and the Nasdaq Composite moved up 0.84% to finish the session at 13,705.13. All the three indices have lost significant ground in August thus far.
However, all eyes would continue to be data this week. Investors will be watching out for the reading on personal consumption expenditures index. It is expected to be out on Thursday, followed by fresh non-farm payroll data Friday morning.
The US Treasury yields also ended lower as investors remained focused on remarks from Jerome Powell which signaled the possibility of more interest rate hikes to tackle inflation.
Prashanth Tapse, Senior VP (Research), Mehta Equities believes that “Markets could display a mixed trend in early Tuesday trades amid fluctuation in the Gift Nifty index even as US indices rose sharply in overnight trades while other Asian gauges, too, are trading on firm ground. For markets to bounce and sustain at higher levels, FIIs buying participation will be a key factor. However, the FII camp sold shares to the tune of Rs 1393 crores in yesterday’s trade, implying the pessimism amongst the overseas investors amid higher US bond yields and likely uptick in interest rates which could further drag the global economic growth. On the stock front, shares from the Reliance Industries pack could be in the spotlight after the company’s AGM yesterday. Technically, Nifty’s upside is likely to be capped at 19437-19589 zone, while caution will continue to be the buzzword as long as the index is trading below the 19589 mark.”