Asian markets were trading lower on Monday after North Korea launched a missile which landed within 230 miles of Japan's coast. Indian indices were trading higher in the morning with the BSE Sensex at 32,431.32 up 0.38% or 121.44 points. Market breadth was positive and out of a total of 2,302 shares traded on the Bombay Stock Exchange (BSE), 1,201 advanced while 985 declined and 116 remained unchanged. The Nifty 50 was at 10,036.60 up 0.22% or 22.10 points. Last week, the Nifty and the Sensex surged to record highs with the Nifty closing above 10,000 for most of the sessions.
Indian government bonds were trading higher with yields on 10-year government bonds at 6.43% in morning trades higher from the previous close of 6.46%. The Indian rupee was trading firm against the US dollar at Rs 64.09 from its previous close of Rs 64.15.
US equities ended lower on Friday after poor results from Amazon. Furthermore, second quarter GDP data released on Friday was lackluster suggesting that the economy grew at 2.6%. European stocks closed at a three-month low in light of weaker than expected earnings from banking shares.
The Week Ahead
The focus this week will continue to be the earnings results globally. On August 2, the Reserve Bank of India will announce its monetary policy decision on the movement of interest rates. The Bank of England too will announce its monetary policy decision during the week.
During the week, significant data releases include China's manufacturing and non-manufacturing PMI, Japan's industrial production and eurozone housing and inflation data. US manufacturing numbers too will be released this week.