Negative global cues may put pressure on domestic stocks

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 12 points at the opening bell.

Overseas, Asia shares declined as Wall Street ended its four-day winning streak in the last session, following a report that US President Donald Trump voiced his support for moving forward with more proposed tariffs.

China reported on Friday that factory activity was higher than expected in August, with the official manufacturing Purchasing Manager's Index (PMI) coming in at 51.3. A reading above 50 indicates expansion, while a reading below that signals contraction. China's official services PMI for August rose to 54.2 for August against 54.0 in July, the National Bureau of Statistics reported.

In US, stocks snapped a four-day winning streak to finish lower Thursday, with the Dow falling back below 26,000. Media reported that Trump said to his aides that he supports going ahead with the imposition of proposed tariffs on an additional $200 billion in Chinese goods. The report did, however, also mention that Trump has not made up his mind on the matter. The White House declined to comment on the report.

On the US data front, initial jobless claims, a barometer of layoffs, rose by 3,000 to 213,000 in the week ended 25 August 2018. Nonetheless, the monthly average of claims fell by 1,500 to 212,250, the lowest level since December 1969.

Consumer spending climbed 0.4% in July, according to a government reading. Incomes rose 0.3%. And the 12-month increase in the PCE index, the Federal Reserve's preferred inflation gauge, rose to 2.3% from 2.2%, marking the highest level since April 2012, suggesting the Fed is likely to maintain its hawkish bias.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 958.01 crore yesterday, 30 August 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 1598.67 crore yesterday, 30 August 2018, as per provisional data.

Key benchmark indices ended with small losses yesterday, 30 August 2018, on negative global stocks. The barometer index, the S&P BSE Sensex, fell 32.83 points or 0.08% to settle at 38,690.10. The Nifty 50 index fell 15.10 points or 0.13% to settle at 11,676.80.

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