Indian stock markets are expected to open flat on Friday after a steep fall on Thursday amid weak global cues. According to experts, the Nifty witnessed a rollover of nearly 78 per cent, which is more than the three-month average. According to them, most of the positions rolled over were on the short side, and they expect the market to remain under pressure in the coming days.
Meanwhile, Gift Nifty at 24,140 signals a flat opening for Nifty, as Nifty December futures closed at 24,115. Asian stocks are weak in early trade, albeit marginally.
On Thursday, the domestic stock market experienced heavy selling pressure due to heightened geopolitical uncertainty on the monthly F&O expiry day.
News of the escalating war between Russia and Ukraine made traders nervous about carrying their long positions, said Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities. Markets are likely to remain lacklustre in the near term due to a lack of global cues. South Korea’s central bank unexpectedly cut its policy rate for a second straight time and lowered its growth forecasts for the country as it looks to step up support for the sagging economy, he said.
FPIs sold over 11,750-crore worth of shares on Thursday, following the geopolitical tension.
However, broader markets displayed resilience, with the Nifty Midcap100 and Smallcap100 indices ending in positive territory.
“US PCE data released yesterday came in below expectations, while GDP growth of 2.8% met forecasts, adding to concerns of a slower pace of Federal Reserve rate cuts. Investors remain cautious ahead of key data releases tomorrow, including India’s Q2 GDP numbers, China’s manufacturing PMI, and Eurozone CPI. Optimism could return if geopolitical concerns ease, though consolidation within a broader range is likely to continue,” said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Satish Chandra Aluri, Lemonn Markets Desk, said: After three days of sideways movement with a positive bias, markets fell sharply, closing below the key 24000 level for Nifty 50. Monthly index expiry and weak global cues after overnight losses in US markets weighed on the sentiment. US markets closed lower, led by tech stocks, after data showed US consumer spending increased slightly more than expected in October, leading to expectations of fewer interest rate cuts from the Federal Reserve next year. “Our view is that elevated valuations and slower growth alongside a challenging global environment will continue to weigh on markets in the near term,” he added.
