SGX Nifty Pointing Lower for Stocks in India as Global Factors Weigh on Valuations

In opening market trading Monday, the SGX Nifty is lower by 37 points which is in trend with what is happening in other Asian markets. The high resistance level for Monday is 8,401.50 and the low support level is 8,017.50.

On Friday in Singapore the SGX Nifty closed at 8,160.00 down 37 points for a loss of -0.45 percent. The high for the day was 8,298.50 and the low for the day was 8,170.50. On Friday the NSE Nifty was lower, closing at 8170.05 for a loss of -33.55 points or -0.41 percent. The BSE Sensex was also lower closing at 26635.75 for a loss of -127.71 points or -0.48 percent.

As a leading indicator for the NSE Nifty, the SGX Nifty is pointing lower Monday for continued losses in Indian stocks. It seems that stocks in India will continue trending lower as global factors weigh on valuations including the U.S. Federal Reserve’s monetary policy meeting on June 14 and 15 and the U.K.’s exit vote referendum on June 23.

All stock sectors were lower in India on Friday with auto, consumer durables and banking stocks leading losses. The S&P BSE Auto Index was lower at 19308.28 with a loss of -186 points. The S&P BSE Consumer Durables Index was lower at 11452.45 for a loss of -81.61 points. The S&P BSE Bankex Index was lower at 20426.9 for a loss of -76.13 points.

Stocks leading losses included Tata Motors, down 2 percent, Force Motors Ltd., down 0.3 percent, Maruti Suzuki, down 1.6 percent and State Bank of India, down 1.8 percent.

In other Asian markets, stocks were also lower. China’s Shanghai Composite was closed on Friday. Hong Kong’s Hang Seng Index was lower at 21042.64 for a loss of -255.24 points or -1.20 percent. Japan’s Nikkei was lower at 16601.36 for a loss of -67.05 points or -0.40 percent.

In Europe, market indexes were also lower. The Stoxx Europe 600 was down -8.33 points or -2.44 percent at 332.92. The Stoxx Europe 50 was lower at 2785.19 for a loss of -66.59 points or -2.34 percent. France’s CAC 40 was lower at 4306.72 for a loss of -98.89 points or -2.24 percent. Germany’s DAX was lower at 9834.62 for a loss of -254.25 points or -2.52 percent. The FTSE 100 was lower at 6115.76 for a loss of -116.13 points or -1.86 percent. The FTSE 250 was lower at 16827.45 for a loss of -284.14 points or -1.66 percent.

In the U.S. the leading market indexes were lower on Friday. The Dow Jones Industrial Average closed at 17865.34 for a loss of -119.85 points or -0.67 percent. The S&P 500 was also down, closing at 2096.07 for a loss of -19.41 points or -0.92 percent. The Nasdaq Composite closed lower at 4894.55 for a loss of -64.07 points or -1.29 percent.

Other notable index closes in the U.S. included the small-cap Russell 2000, closing lower at 1163.93 for a loss of -17.27 points or -1.46 percent; the S&P 600 closing at 712.58 for a loss of -9.93 points or -1.37 percent; the S&P 400 Mid-Cap Index closing at 1499.07 for a loss of -21.91 points or -1.44 percent; the Russell 3000 closing at 1236.39 for a loss of -12.88 points or -1.03 percent; and the Dow Jones U.S. Select Dividend Index which closed at 600.31 for a loss of -4.46 points or -0.74 percent.

Julie Young

julie@sgxnifty.org

Julie Young is a senior Market Reporter and Analyst

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