Domestic markets are expected to open marginally down on Thursday, as all eyes are on US interest data, which will be out later in the evening.
As the US midterm polls confused the investors’ lot, now marketmen set their eyes on economic data.
US stocks declined as the midterm election results are still not clear, but seem to favour a divided government outcome. Wall Street is having an election hangover that most likely saw an end to Biden’s blue wave. Traders can now go back focusing on everything with inflation, said Edward Moya, Senior Market Analyst, The Americas OANDA.
SGX Nifty at 18,110 indicates a gap down opening of about 0.5 per cent for domestic benchmarks. Asia-Pacific stocks are down between 0.4 per cent and 1.3 per cent in early deal on Thursday, tracking the overnight US stocks decline.
Domestic front
On the domestic front, analysts expect consolidation to continue with major companies announcing their quarterly numbers. According to marketmen, most companies have performed better than expected. Besides, positive inflow from foreign portfolio investors helping the market stabilise at current levels, they added.
“Continued FII inflows, combined with consolidation in the dollar index, boosted market sentiment. A major next trigger could be the US CPI inflation, to be announced later today, consensus indicates a moderation to 7.9 per cent in October compared to 8.2 per cent in Sept. A fast slowdown in inflation would provide the fuel for the market to edge higher, the key problem of 2022,” said Vinod Nair, Head of Research at Geojit Financial Service.
Prashanth Tapse, Research Analyst, Senior VP (Research), Mehta Equities Ltd, said,“Amid a sea of red across the global markets, key local benchmark indices brace for a rough trading session in Thursday trades.”
Overnight, the US equities witnessed a major sell-off as investors resorted to panic selling as the mid-term election results still remained undecided. The outcome is seen as having an enormous impact as it will give voters an opportunity to indirectly express their views on Biden’s presidency and the current direction of the country, he added.