Domestic markets are expected to open flat on Friday. Analysts say lack of trigger will keep the market under narrow range and participation is expected to remain low. Even as the US stock slumped overnight, most of the Asia-Pacific stocks are ruling steady.

The US stocks declined after the labour market statistics reveals that despite all the big-tech post-pandemic layoffs, the jobs market remains hot. The labour market needs to break to allow the Fed to comfortably keep rates on hold. The risk of more rate hikes down the road will remain on the table if we don’t see the unemployment make a serious move higher above 4 per cent, said Edward Moya, Senior Market Analyst, The Americas OANDA.

The SGX NIfty at the Singapore Stock Exchange is ruling at 18,130 indicating a flat opening for domestic markets, as Nifty futures on Thursday closed at 18,113.

Experts believe the trend is likely to continue as global analysts await Fed’s next move given the mixed data from the US markets.

“The uncertain global market environment coupled with a hawkish stance by the US Fed officials on interest rate hikes kept the mood gloomy throughout the trading session. Although inflation is showing signs of some moderation, concerns over a likely recession in the US and western economies is prompting investors to turn risk averse toward equities, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

FPIs selling slow down

Analysts said FPIs selling has slowdown a bit, and in fact, they turned buyers on a couple of occasions in the last few days. On Thursday, they were buyers to the tune of nearly ₹400 crore in cash segment.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said: “The market has shifted into a consolidation after an upside bounce and there is a possibility of further range movement or minor weakness in the next 1-2 sessions before showing upside potential from the lows.”