Indian stock markets are likely to open on a positive note on the last day of 2022. SGX Nifty at 18,350 indicates that domestic benchmarks likely to open higher as Nifty futures on Thursday closed at 18,292.

A healthy 79 per cent of Nifty futures contracts were rolled over to January. This signals a positive beginning for market in 2023. According to analysts, traders carrying forward their position to benefit from pre-Budget rally.

Vinod Nair, Head of Research at Geojit Financial, said: “The domestic market trend was influenced by the movements of its global counterparts as a negative US closing pushed Indian bourses to a poor start. However, positive signals from US futures lifted the benchmark index above the flatline on Thursday. Markets will continue to witness such sudden movements, underpinned by lingering recession and Covid fears, which will be countered by bargain hunters,” he added.

Global stocks, too, send a positive signal for domestic markets. Equities across Asia-Pacific region are up between 0.3 and 1.3 per cent in early deal on Friday. Overnight, led by Nasdaq, the US stocks jumped sharply.

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However, widening current-account deficit is a cause for concern said analysts.

“The current account deficit witnessed a two-fold jump from 2.2 per cent to 4.4 per cent is mainly on account of a high merchandise trade deficit and an increase in net outgo under investment income,” said an analyst.

Veer Trivedi, Research Analyst, Samco Securities, said: “If we look holistically, the government has been able to handle the finances well despite the pandemic and commodity inflation shocks. A robust tax collection and a cooling off in commodity prices have aided the government’s budget.”

The upcoming elections are expected to continue to be an overhang on our current account deficit in the short to medium-term, he cautioned.

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