Markets may make a cautious but positive start on F&O expiry
Today, the start of the F&O series expiry session is likely to be flat and lot of volatility may be seen with the progress of session and as traders balance their positions for the new series. The SGX Nifty suggests that the Nifty could open at 11,088 with modest gains of 11 points.
Post the markets on Wednesday, the government laid out a clear and detailed roadmap for the recapitalisation of the PSU banks. The government has allocated Rs 88,000 crore for recapitalisation, of which nearly Rs 80,000 will come in the form of recap bonds.
Ajanta Pharma, Avenue Supermarts, Dr Reddy’s Lab, Future Supply Chain Solutions, Jindal Steel and Power, L&T Finance Holdings, LIC Housing Finance, Maruti Suzuki, Nilkamal, UPL, Tata Coffee are some of the key companies to announce their results today.
Asian equity benchmarks are trading lower on Thursday as sentiments from the US markets were not encouraging. Japan's Nikkei 225 has tumbled 194 points to 23,746, Hong Kong’s benchmark Hang Seng Index has dropped 207 points to 32,752 and the China’s Shanghai Composite has shed 15 points to 3,545.
Back home, key benchmark indices extended their rally to sixth consecutive trading session. However, the gains were limited as BSE Sensex gained 22 points to settle at 36,162 and Nifty ended with gains of 2 points at 11,086. Nifty PSU Bank and IT stocks held the markets firm, whereas Nifty Metal dragged down the markets. The broader indices underperformed the benchmark indices, with both Nifty Mid-cap and Nifty Small-cap shedding 0.44% and 0.81%, respectively.
The US stocks retreated from record territory on Wednesday as technology stocks dragged the markets, but the Dow Jones managed to buck the trend to reach a new record closing high. The sentiments in the first half of the trading session remained upbeat on the back of positive reaction to the latest batch of quarterly earnings, with all the three equity benchmarks setting fresh all-time intra-day highs, but these levels could not be sustained. The Dow Jones Industrial Average gained 41 points to close at 26,252, while the Nasdaq slipped 45 points to finish at 7,415 and the S&P 500 dipped 2 points to settle at 2,838.
The stock markets in Europe closed lower on Wednesday, as the euro and the British pound rallied against dollar. The surge in the currencies pressured stocks of European exporters. Market participants will keep a close eye on announcement from the ECB and on the forward guidance which is scheduled on Thursday. Germany’s DAX dropped 1.07%, CAC 40 of France lost 0.72% and the FTSE 100 of the UK plunged 1.14%.