Market may open on subdued note on weak global stocks

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slide 97 points at the opening bell.

Global markets:

Overseas, Asian stocks are trading lower on Friday as investors continue to weigh the Federal Reserve`s aggressive stance. Japan markets were closed for a holiday Friday.

US stocks ended lower on Thursday, falling for a third straight session as investors reacted to the Federal Reserve`s latest aggressive move to rein in inflation by selling growth stocks, including technology companies.

The US current account deficit narrowed sharply in the second quarter amid a surge in goods exports, data showed on Thursday. The Commerce Department said that the current account deficit, which measures the flow of goods, services and investments into and out of the country, contracted 11.1% to $251.1 billion last quarter. The current account gap represented 4% of gross domestic product, down from 4.6% in the January-March quarter.

The Bank of England raised its key interest rate to 2.25% from 1.75% on Thursday and said it would continue to "respond forcefully, as necessary" to inflation, despite the economy entering recession. The BoE`s Monetary Policy Committee voted 5-4 to raise rates to 2.25%.

Domestic markets:

Back home, equity benchmarks declined for the second consecutive session on Thursday, tracking negative global cues. The barometer index, the S&P BSE Sensex, slipped 337.06 points or 0.57% to 59,119.72. The Nifty 50 index declined 88.55 points or 0.50% to 17,629.80.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,509.55 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 263.07 crore in the Indian equity market on 22 September, provisional data showed.

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