Domestic stock markets are expected to open on negative note on Thursday. Volatility is likely to continue at the bourses with today being the settlement day for F&O contracts on the NSE. Uncertainty in global markets are likely to put additional pressure on domestic markets, said market analysts.
“We witnessed choppy trade in financial markets on Wednesday. And the holiday trade trend is likely to continue even on Thursday, with light news flow combined with lower liquidity creating volatile but insignificant moves. It is very much feels like we’re now just drifting into 2023 at which point we expect things will quickly pick up again,” said Craig Erlam, Senior Market Analyst, UK & EMEA, OANDA.
SGX Nifty at 18,050 indicates a gap down opening with Nifty December futures closing at 18,113 and January futures at 18,228. on Wedensday.
In his 2023 outook, Nirav Sheth, CEO, Institutional Equities, Emkay Global Financial Services, said, “The movement of the dollar index continues to be a cause of concern due to the sheer impact it has on multiple things. We expect a further instalment of rate hike by the US Fed and the RBI thereby strengthening the respective currencies. We expect RBI to go on a long pause by 2Q CY23.”
Stocks across Asia-Pacific region declined in early deal on Thursday on the back of fresh concerns about the spread of Covid-19 in China. Equity benchmarks in Japan, Hong Kong, Australia and South Korea fell over 1 per cent amid thin volumes.
According to Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services Ltd, said: “Overall declines are being bought into...however, follow up buying is missing at higher levels. Hence, traders are suggested to keep strict stop loss and book profits on every rise.”