Talking about Asian markets, a mixed trend is being seen here today. Japan’s Nikkei index is trading with a decline of about half a percent, while the Taiwan index is up by almost the same amount. South Korea’s Kospi index remains flat. At the same time, China’s Shanghai Composite and Hong Kong’s Hang Seng are showing bullish signs.
Positive results were seen in the American markets yesterday, due to which the Dow Jones managed to close above 43,000. Nvidia capped the decline from the day before, while Morgan Stanley and United Airlines were the biggest contributors to yesterday’s rise. Morgan Stanley closed up 6.5% on better-than-expected earnings report. On the other hand, ASML has fallen 20% in the last two days.
Pre-opening market comment from Prashant Tapase, Senior VP (Research), Mehta Equities Ltd:
Nifty had slipped below the 25,000 level in yesterday’s trade, and while a recovery is expected in today’s session, market sentiments remain weak. This is due to continued selling by foreign institutional investors (FIIs) (withdrawal of Rs 67,300 crore in October), weak second quarter results, ongoing tensions in the Middle East and concerns over China’s economic condition. Today important results of Axis Bank, Infosys and Wipro are coming. RailTel, which has received an order worth Rs 79 crore from MHADA, and Hyundai’s Rs 27,870 crore IPO, which has received strong subscription, are also in the market’s focus. We recommend buying Nifty and Bank Nifty, with bullishness on DLF, Cummins and Dr Reddy’s Labs seeing potential for short-term gains.