Market may see flat opening

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 3 points at the opening bell.

Overseas, Asian stocks were mixed, with several regional stocks looking to stem sharp losses made in the previous session that were caused by elevated fears of a trade war between the US and China.

US stocks declined on Tuesday, as investors sold stocks following President Donald Trump's late-Monday threat to slap an additional $400 billion in tariffs on China goods. The announcement represented the latest escalation in a dispute between the two largest economies in the world, rattling investors.

After Beijing's retaliation against US planned tariffs on $50 billion worth of Chinese imports, Trump asked US Trade Representative Robert Lighthizer late Monday to identify $200 billion more in Chinese products that could be subject to tariffs of 10%. The US president also threatened to find $200 billion more worth of goods if China tried to retaliate against those additional tariffs.

A spokesperson from China's Ministry of Commerce reportedly said China will have no choice but to take comprehensive measures in response to the US's trade moves

On the US data front, Housing starts ran at a seasonally adjusted annual 1.35 million annual rate in May, the Commerce Department said Tuesday. Permits were at a 1.3 million seasonally adjusted annual rate.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 1324.92 crore yesterday, 19 June 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 653.68 crore yesterday, 19 June 2018, as per provisional data.

Domestic stocks finished with modest losses yesterday, 19 June 2018, due to weak global cues as the trade spat between the US and China intensified. The barometer index, the S&P BSE Sensex, lost 261.52 points or 0.74% to settle at 35,286.74. The Nifty 50 index fell 89.40 points or 0.83% to settle at 10,710.45. Unabated capital outflows by foreign funds too dampened sentiment.

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