Market may open on firm note; volatility may zoom on F&O expiry

Trading could be volatile as traders roll over positions in the F&O segment from the near month July series to August series. The July 2022 F&O contracts will expire on 28 July 2022.

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 99 points at the opening bell.

Global markets:

Overseas, Asian stocks are mostly higher on Thursday following the U.S. Federal Reserve`s decision to raise rates by 75 basis points to fight inflation, a move that was widely expected.

US stocks rallied Wednesday after the Federal Reserve announced its much anticipated rate increase to fight inflation, but hinted that it could slow the pace of its hiking campaign at some point. The Federal Reserve on Wednesday enacted its second consecutive 0.75 percentage point interest rate increase, taking its benchmark rate to a range of 2.25%-2.5%. The increase takes the funds rate to its highest level since December 2018.

Powell said in a press conference that the Fed could hike by 0.75 percentage point again in September, but that it would be dependent on the data. �As the stance of monetary policy tightens further, it likely will become appropriate to slow the pace of increases while we assess how our cumulative policy adjustments are affecting the economy and inflation,� he said.

Domestic markets:

Back home, the domestic equity benchmarks ended with strong gains on Wednesday. The barometer index, the S&P BSE Sensex, advanced 547.83 points or 0.99% to 55,816.32. The Nifty 50 index gained 157.95 points or 0.96% to 16,641.80.

Foreign portfolio investors (FPIs) sold shares worth Rs 436.81 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 712.03 crore in the Indian equity market on 27 July, provisional data showed.

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