Domestic benchmarks on Friday are likely to open on a flat note with a negative bias amid turbulence in global stock markets. However, experts are of the view that Indian markets will be able to withstand pressure, despite valuation concern.

Following the hawkish statement by the Chairman of US Federal Reserve, the US stocks went into a tailspin for the second straight day. Equities across the Europe, too, suffered as Bank of England hiked the interest rate by another 0.75 percentage points.

SGX Nifty at 18,098 indicates that flat-to-negative opening against Nifty Futures’ Thursday’s close of 18,118.

Most of the equities across Asia Pacific region on Friday opened marginally down except Japan’s Nikkei, which tumbled over two per cent.

Related Stories
Day Trading Guide for November 4, 2022
Here are the key intraday supports and resistances to watch out for Nifty Futures, RIL, ONGC, TCS, Infosys, HDFC Bank, SBI, and ITC

Analysts said that domestic markets will remain on consolidation mode as most of the negatives have already been discounted. However, there will be a downward bias till global uncertainty gets over and till such time stock and sector-specific action will continue, they added.

Fed’s stance

Akhil Mittal, senior fund manager, Tata Mutual Fund, said: The US Federal reserve delivered 75 bps rate hike on expected lines and maintained its position of inflation control as top priority.

“The market was expecting a bit dovish tone from Federal reserve, but it did not provide any such indication. However, the federal reserve tone was not hawkish either. We now anticipate that the central bank might not deliver 75 bps moves going ahead, however, pivot might shift to 5 per cent instead of 4.5-5 per cent,” he added.

Analysts said India’s fundamentals remain relatively and foreign portfolio investors have already started to accumulate.

Eyes on US stocks

However, some analysts cautioned that Indian markets cannot perform well for a long defying global sell-off.

Ruchit Jain, Lead Research,, said: “The short-term trend for our markets is still intact as of now, but if look at the US markets, then it seems that the Nasdaq Index has resumed its downtrend post a pullback move and it could even breach the recent swing lows going ahead. If it happens, the global equities, too, could then react negatively and hence, short-term traders should be vigilant on the global cues going ahead.”