Effect of Trump’s inagural ceremony

Caution prevailed in World financial markets

Caution prevailed in financial marketson Friday ahead of US President-elect Donald Trump's inauguration, even as China's economic growth beat expectations and Federal Reserve Chair Janet Yellen toned down her earlier hawkish policy stance.
In India Benchmark indices continued trading under pressure volatility as investors remained cautious ahead of inauguration speech of Donald Trump as US President and after disappointing Axis Bank's earnings. Broader sentiment was also subdued even after China's fourth-quarter economic growth beat expectations and Federal Reserve Chair Janet Yellen took a less hawkish policy stance.Nifty 50 breached its 8,400 level dragged by Axis Bank, Bank of Baroda, Adani Ports and ACC while BSE Sensex fell as much as 296 points at intra-day.S&P BSE Sensex settled the day at 27,034, down 274 points, while the broader Nifty50 ended at 8,349, down 85 points. Among broader markets, BSE Midcap index fell 1.5% while BSE Smallcap index fell 0.1.2%.
European markets dipped amid trepidation over Trump's first speech as president. Britain's FTSE 100 was trading 0.15% lower, while Germany's DAX and France's CAC 40 were trading in green. MSCI's broadest index of Asia-Pacific shares outside Japan retreated 0.2%, and looked set to end the week flat.Japan's Nikkei reversed earlier losses to close 0.3% higher, posting a 1.1% weekly loss.China's fourth-quarter gross domestic product growth came in at 6.8%, versus forecasts of 6.7%, supported by higher government spending and record bank lending.The data helped lift China's CSI 300 index 0.8%, setting it on course for a 1% weekly gain.