August has been weak for global equity markets

New Delhi, August 28 (IANS) August has been weak for global equity markets. In the US market, S&P 500 is down by 4 per cent so far this month, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

This weakness has impacted all other markets including the Indian market where Nifty is down by around 2 per cent so far in August, he said.

The global economic scenario and the growth, inflation and interest rate trends in the US will continue to determine stock market trends globally.

US Federal Reserve chair Jerome Powell’s candid remark at Jackson Hole that “we are navigating by the stars under cloudy skies”, is an indicator of the uncertainty surrounding the global economy and markets.

However, the Powell commentary was neutral without any market-moving hawkish or dovish tones, he added.

The market will be keenly watching for signals from the RIL AGM on Monday, Vijayakumar noted.

The high US bond yields and the dollar index above 104 are near-term negatives for capital flows to emerging markets like India, he said.

Vaishali Parekh, Vice President, Technical Research, at Prabhudas Lilladher, said: "The Nifty opened on a weak note and hovered near the crucial support zone of 19,270 levels which is also where the significant 50EMA lies, and as we have been mentioning, a decisive breach below the 19,250-19,270 zone shall weaken the overall bias and can trigger for further slide with next major support zone visible near 18,800-18,900 levels with 19,000 as the psychological landmark in-between.

"The support for the day is seen at 19,100 levels while the resistance is seen at 19,400 levels."

BSE Sensex was up 153 points at 65,040 points on Monday morning.