SGX Nifty Pointing Lower for Stocks in India

In opening market trading Monday, the SGX Nifty is lower by -48.50 points. The SGX Nifty is implying a lower opening for the NSE Nifty which is on trend with the beginning of the trading day in Asia.

On Friday in Singapore the SGX Nifty closed at 7,781.00, down -0.62 percent. The high for the day was 7,890.50 and the low for the day was 7,784.50. The high resistance level for Monday is 7,991.17 and the low support level is 7,673.17.

On Friday, stocks in India traded lower. The NSE Nifty was down -85.50 points or -1.08 percent to 7,814.90. The BSE Sensex was also lower, down -300.65 points or -1.17 percent to 25,489.57.  All sectors were lower and banks reported some of the greatest losses as inflation data changed the outlook slightly for the economy and the Bank of India’s monetary policy. The S&P BSE Bankex was down -241.43 points to 19,039.77 and the Bank Nifty Index was down -206.8 points to 16,716.9. Stocks reporting some of the greatest losses for the day included State Bank of India and ICICI Bank. State Bank of India was down -3.60 points or -1.91 percent to 184.90 INR and ICICI Bank was down -4.95 points or -2.14 percent to 226.85 INR.

Data released Thursday evening by the government showed inflation rates increasing at a much faster pace in India than expected. Consumer price levels increased at an annualized rate of 5.39 percent in April. At 4.83 percent in March, the inflation rate was previously much lower. The higher inflation results will likely keep the Bank of India from changing its standard interest rate when it meets on June 7. The Bank of India has been steadily reducing rates over the last year with a decrease of 150 basis points. Uncertainty around the central bank’s rate policy decision in June will likely increase volatility for stocks in India in the weeks ahead.

In Asia, stocks traded mostly lower on Friday. In China, the Shanghai Composite was down -8.75 points or -0.31 percent to close at 2,827.11. Hong Kong’s Hang Seng Index was down -196.17 points or -0.99 percent to close at 19,719.29 and the Nikkei Index in Japan was down -234.13 points or -1.41 percent to 16,412.21.

In Europe on Friday, the FTSE 100 was up 34.31 points or 0.56 percent to close at 6,138.50. The FTSE 250 was down -9.57 points or -0.06 percent to 16,650.30. France’s CAC 40 closed at 4,319.99 for a gain of 26.72 points or 0.62 percent. Germany’s DAX was down 90.78 points or 0.92 percent to close at 9,952.90. The Stoxx Europe 600 closed at 334.68 for a gain of 1.57 points or 0.47 percent and the Stoxx Europe 50 closed at 2,805.56 for a gain of 18.87 points or 0.68 percent.

In the U.S., stocks traded lower as retail earnings continued to affect valuations negatively. Nordstrom, JCPenney, Dillard’s, Macy’s, Kohl’s and Gap were the main retail stocks weighing on valuations Friday. On Friday the Dow Jones Industrial Average was down -185.18 points or -1.05 percent to close at 17,535.32. The S&P 500 was down -17.50 points or -0.85 percent to close at 2,046.61. The Nasdaq Composite was down -19.66 points or -0.42 percent to close at 4,717.68.

Julie Young

julie@sgxnifty.org

Julie Young is a senior Market Reporter and Analyst

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