SGX Nifty Pointing Lower as Global Markets Are Down on U.S. Fed Policy Affects

In opening market trading Friday, the SGX Nifty is lower by -49.50 points as global markets are trending lower from potential affects of a June rate increase from the U.S. Federal Reserve. The high resistance level for the SGX Nifty on Friday is 7,967.83 and the low support level is 7,627.33.

Closely tracking the direction of the India NSE Nifty, the SGX Nifty is indicating that stocks in India are likely to continue losses on Friday after finishing lower on Thursday as well. On Thursday, the NSE Nifty was down -86.75 points or -1.10 percent to 7,783.40. The BSE Sensex was also lower at 25,399.72 for a loss of -304.89 points or -1.19 percent. All market sectors in India were lower on Thursday with capital goods and bank stocks leading losses. Bank stocks were down as the sector has been consistently reporting losses in earnings. Leading share value losses for the day on Thursday were Punjab National Bank and Corporation Bank, after both companies reported significant earnings losses during the week.

Actively traded for the day was Parag Milk Foods which increased 14 percent following its initial public offering and trading debut. Other stocks trading higher for the day included Gati Ltd., Snowman Logistics and Allcargo Logistics Ltd. In the transportation and logistics sector, stocks were up as positive news on a goods and services tax reform helped valuations.

In other Asian markets, stocks traded mostly lower. Hong Kong’s Hang Seng Index was down -132.08 points or -0.67 percent to 19,694.33. In China, the Shanghai Composite was lower at 2,806.91 for a loss of -0.61 points or -0.02 percent. In Japan, the Nikkei was higher at 16,646.66 for a gain of 1.97 points or 0.01 percent. As a broad market measure, the Asia Dow was lower at 2,564.14 for a loss of -29.77 points or -1.15 percent.

In European markets, the FTSE 100 was down -112.45 points or -1.82 percent to 6,053.35. The FTSE 250 was also lower at 16,730.11 for a loss of -151.13 points or -0.90 percent. France’s CAC 40 was down -36.76 points or -0.85 percent to 4,282.54. The Stoxx Europe 600 was down at 333.91 for a loss of -3.67 points or -1.09 percent. The Europe Dow was down at 1,505.83 for a loss of -30.61 points or -1.99 percent.

In the U.S., market indexes were lower on Thursday with uncertainty over the Fed’s next rate increase. For the day the Dow Jones Industrial Average lost -91.22 points or -0.52 percent to close at 17,435.40. The S&P 500 was also down, closing at 2,040.04 for a loss of -7.59 points or -0.37 percent. The Nasdaq Composite closed lower at 4,712.53 for a loss of -26.59 points or -0.56 percent. The VIX Volatility Index was higher with the market’s continued uncertainty. The VIX Volatility Index closed at 16.42 on Thursday for a gain of 0.47 points or 2.95 percent.

Julie Young

julie@sgxnifty.org

Julie Young is a senior Market Reporter and Analyst

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