Market opens lower due to weak global cues

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The market has opened lower due to weak global cues with the BSE Sensex trading at 35,406 points and the NSE Nifty at 10,734 points due to weak global cues.

HDFC, Reliance and the oil marketing companies are losing in the opening trade.

The oil marketing companies are losing in trade as the oil prices rose today. Coal India, Tech Mahindra, Dr Reddys Labs, HCL Tech and Cipla are the top index gainers of the hour.

(The above-mentioned detail is the opening bell for the market on Friday, June 8)

What was expected?

The Indian market is likely to have a tepid opening due to weak global cues.

The SGX Nifty is trading at levels around 10,725 as against the Nifty June Thursday’s future close of 10,729 points, indicating a flat to negative opening for the Indian market.

The Asian shares are set for a soft start on Friday as global risk appetite deteriorated on worries the European Central Bank was ready to start tapering its massive stimulus, although trade was expected to be cautious ahead of big diplomatic meetings.

E-Minis for the S&P500 and Dow futures were both down about 0.1 percent in early Asian trade. Nikkei futures slipped 0.6 percent while Australian share futures ticked 0.1 percent lower.

Uncertainty over how the trade discussions would pan outweighed on stocks and other risk assets overnight, with the S&P 500 and Nasdaq ending lower. A global trade war threatens the world economy’s first synchronous upturn in several years.

Another reason for market nerves was the widening rift between the United States and its major trade partners after President Donald Trump imposed import tariffs on steel and aluminium imports last week.

The Indian market on Thursday closed firmly in the green. The benchmark Nifty index closed 0.8% higher at 10,768 points after breaching 10,800 intra-day for the first time in 17 sessions, while the 30-stock Sensex gained 284 points to 35,463.

The broader markets also saw gains on the line of benchmarks, with the Nifty Bank index gaining 150 points to 26,518 and the Nifty Midcap index surging 281 points to 18,734.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow