Market may open on firm note
Published on Sep 08, 2022 08:32
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 118 points at the opening bell.
Overseas, Asian stocks are trading mixed following Wall Street`s solid rebound rally overnight.
Japan`s economy grew more than initially reported in the second quarter, as the lifting of local Covid-19 restrictions boosted consumer and business spending. Gross domestic product (GDP) in the world`s third-largest economy expanded an annualised 3.5% in the second quarter, stronger than the preliminary estimate of annualised 2.2% growth, government data showed Thursday.
US stock indexes climbed the most in roughly a month as bond yields eased, with investors shrugging off hawkish remarks made by Federal Reserve officials on Wednesday.
Stocks rallied as Fed Vice Chair Lael Brainard reaffirmed that the central bank would do what it takes to stifle inflation, while also noting the risks of going too far.
On Wednesday, the Federal Reserve gave its summary on current economic conditions, known as the Beige Book. The report showed that economic activity was little changed in many regions across the U.S., and that growth outlooks remain weak.
Investors will also be closely watching Federal Reserve Chair Jerome Powell`s speech Thursday as markets brace for another 75 basis-point hike later this month.
Meanwhile, the European Central Bank is expected to make its next move on interest rates on Thursday. The ECB is expected to deliver its first-ever 75 basis point interest rate increase, as per reports.
Oil prices settled sharply lower on Wednesday, slumping below levels seen prior to Russia`s invasion of Ukraine as downbeat Chinese trade data fed investor worries about recession risks. Brent crude futures settled down $4.83 to $88 a barrel, falling below $90 a barrel for the first since February 8.
Back home, the domestic equity benchmarks ended with small losses after a volatile session on Wednesday. The barometer index, the S&P BSE Sensex, declined 168.08 points or 0.28% to 59,028.91. The Nifty 50 index lost 31.20 points or 0.18% to 17,624.40.
Foreign portfolio investors (FPIs) bought shares worth Rs 758.37 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 138.67 crore in the Indian equity market on 7 September, provisional data showed.
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