Lower opening in store for the markets!
After yesterday’s relief rally, the market participants would be hoping for an extension of the rally as in the market parlance, a pre-budget rally as a countdown to the Budget has already started. But, throwing cold showers on expectation of the pre-budget rally is renewing concern about the impact of the coronavirus outbreak. Asian peers are bleeding red and this weakness is likely to spread to Indian shore as well. Indian markets may open below yesterday’s closing line as SGX Nifty indicates a lower opening at 12,111 levels. Further, volatility is likely to play its part in today’s session on the eve of expiry of F&O contracts of January series. On earning front, companies like Tata Motors, Bajaj Auto, Marico, Dabur, MCX, Colgate-Palmolive (India) and Bajaj Holding will announce their Q3 earnings today.
Stock markets in Asia were trading in red on Thursday, following lackluster cues from the Wall Street. The sell-off is seen on the back of an increased fear of the coronavirus spread. Japan’s Nikkei 225 is down by 1.25 per cent and Hong Kong’s Hang Seng has lost 0.96 per cent.
Back home, the key benchmark indices snapped its two-day losing streak on Wednesday with Nifty and Sensex reclaiming their important psychological levels of 12,100 (Nifty) and 41,150 (Sensex). The day started off with a positive note and thereafter, bulls were seen building upon early gains. However, volatility kicked in and the markets closed at their day’s high. In the broader markets, mixed action was seen with Nifty mid-cap adding 0.22 per cent while, Nifty small-cap lost 0.16 per cent. Majority of the sectoral indices ended in-line with the benchmark index and closed in green. Nifty Pharma was a lone loser while, Nifty FMCG emerged as the top gainer as it posted gains of about 1.3 per cent.
Globally, US stock got off to a higher start on Wednesday, but as the day progressed, it surrendered most of its gains and ended the day near flat line. The concern surrounding the impact of the spreading coronavirus continued to keep market participants on edge. Meanwhile, the Fed kept its monetary policy unchanged as widely expected, and its statement remained dovish. In economic news, pending homes sales dipped 4.9 per cent in the month of December. All said and done, Dow added 12 points; S&P shed 3 points and the tech-heavy Nasdaq gained 5 points. European markets extended their gains for the second straight day on Wednesday.