The stock markets opened Monday’s session on a negative note, with S&P BSE Sensex dipping xxx points. BSE Sensex tumbled xx per cent and opened at xx. The Nifty50 index fell yy points or yy per cent and opened at yy. Domestic indices were down in early trade due to passive global cues. Asian shares also started on a cautious note on Monday on escalating trade tensions between the United States and major economies. Oil prices gave up some of their hefty gains made after major oil producers agreed to a modest increase in production.
S&P500 mini futures fell as much as 0.5 per cent in early trade today while MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.2 per cent. Japan’s Nikkei lost 0.4 per cent.
Major gainers in the Sensex pack in morning trade were Infosys, Vedanta Limited, Larsen & Tourbo, Mahindra & Mahindra, Asian Paints and ONGC. Top laggards on the index were HeroMotoCorp, Tata Motors, Axis Bank, ICICI Bank, Yes Bank and Reliance.
Infosys, Sun Pharma, Bajaj Finance, IDBI, Reliance Communications and JP Associates were leading the pack of Nifty gainers in early trade on Monday. While main losers on the index in morning session were Dr Reddy and HDFC.
According to market analysts, global factors such as concerns over trade wars and further developments on tariffs, along with the decision of the Organisation of Petroleum Exporting Countries(OPEC) to marginally increase oil production, would drive the domestic equity market throughout this week. Progress in the monsoon rains and macro-economic data due later in the week would also give the market cues.
“In absence of any major trigger, global clues will continue to dominate market sentiments in coming week. However, trading could be volatile as traders roll over positions in the F&O segment from the near month June 2018 series to July 2018 series. Tracking the technicals, Nifty managed to form a bullish engulfing candlestick pattern on the daily chart, indicating a positive bias for the index going into the June expiry week”, said Gaurav Jain, Director Hem Securities.
Oil prices were supported after OPEC and non-OPEC producers agreed on a modest increase in oil production from next month, without announcing a clear target for the output increase, leaving traders guessing how much more will actually be pumped.
OPEC and non-OPEC said in their statement that they would raise supply by returning to 100 per cent compliance with previously agreed output cuts, after months of underproduction.