Domestic markets are expected to open on a weak note on Friday, amid weak global cues. As US stocks again succumbed to inflation and rate-hike fears on Thursday, equities across Asia-Pacific region opened on negative note, albeit marginally.
According to George Thomas, Fund Manager, Quantum AMC, the declining trend in global markets continued amidst fears pertaining to multi-decadal high inflation and aggressive monetary tightening by global central banks.
Asia-Pacific stocks down
SGX Nifty at 17,270 indicates a gap down opening of 55 points as Nifty futures on Thursday closed at 17,325. Among the Asia-Pacific stocks, Nikkei and Australian slipped 0.5 per cent each, while Taiwan, China, and Hong Kong markets are down by one per cent; Korean and New Zealand stocks are down just marginally.
Analysts said markets are likely to see a range-bound movement until big-ticket results are out next week.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said with earning season about to begin and pre-quarterly updates coming in, "we expect stock specific action to continue in the markets".
Globally, investors would track U.S. jobs data, which is crucial in the current environment of rising interest rates, he added.
Ajit Mishra, VP - Research, Religare Broking Ltd, said, "Markets are still in a range and rotational buying across sectors is helping the index to hold strong amid mixed global cues. Since all the sectors, barring IT, are contributing to the move, the focus should be more on stock selection."
India’s macros
In India, macro indicators are reasonably placed despite global uncertainties.
"GST collections remained above ₹1.4 trillion for the 7th consecutive month. The Manufacturing Purchasing Manager’s Index, published by S & P Global, remained in expansion territory at 55.1 for September. A robust addition in jobs is reflected in the reduction of the unemployment rate across urban and rural areas. Business updates published by leading banks for the September quarter indicate a healthy loan growth trend," added George Thomas.