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Indian markets seen under pressure on global cues, F&O expiry

By Administrator_India

Capital Sands

MUMBAI: Indian stock markets may see a subdued start on Thursday given mixed global cues and because of the expiry of the November F&O series.

SGX Nifty traded 0.1% lower in early deals today, indicating a gap-down opening for India’s benchmark indices. On Wednesday, the Sensex ended at 43,828.10, down 694.92 points, or 1.56%, while the Nifty50 index closed at 12,858.40, down 196.75 points, or 1.51% lower.

Asian shares fell marginally on Thursday as the rally in global equities took a breather, with investors switching their focus from vaccine hopes to disappointing US jobs data and new pandemic-induced lockdowns.

The US Labor Department said 7,78,000 people filed for unemployment benefits for the first time last week.

“Going ahead, the overall structure of the market remains positive given the optimism over vaccine progress and Joe Biden transition as White House President. However intermittent profit booking cannot be ruled out given the sharp rally in near term”,

Investors will watch out for developments on stimulus announcement from the new US government.

Back home, the market would look for cues from the monthly F&O expiry and the rollover data, especially on FII position.

The government is also scheduled to release its September quarter gross domestic product (GDP) data on 27 November. The Indian economy is expected to have seen a recovery in the September quarter after contracting a massive 23.9% in April-June.

Care Ratings expects the GDP to have shrunk 9.9% in the September quarter. Growth is expected to be positive in agriculture, forestry, financial services, real estate, professional services sectors, Care Ratings said in a 23 November report.

Lakshmi Vilas Bank will be on focus as the Union Cabinet has approved its merger with DBS Bank India. Moratorium imposed on the bank will be lifted on 27 November 27. Trading in the bank’s shares will be suspended and the stock will be delisted on 27 November.

Larus Labswill be on focus as it has acquired a 72.55% stake in biotech company Richcore Lifesciences for 246.67 crore.