Pre Session Commentary

Indices may see gap-up opening
(08:36, 29 Sep 2022)

Trading could be volatile as traders roll over positions in the F&O segment from the near month September series to October series. The September 2022 F&O contracts will expire today, 29 September 2022.

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could surge 146 points at the opening bell.

Meanwhile, the Reserve Bank of India (RBI)'s six-member Monetary Policy Committee began on 28 September 2022. RBI Governor Shaktikanta Das will announce the MPC decision on 30 September 2022, the last date of the meeting. The RBI is widely expected to maintain the balancing act between growth and inflation.

In the past three policy reviews, the RBI's rate-setting panel has raised 140 basis points in total since May this year. Currently, the repo rate, the interest rate at which the RBI lends to the commercial bank, stands at 5.40%.

Global markets:

Overseas, Asian stocks are trading higher on Thursday following a rebound on Wall Street overnight.

US stocks staged a comeback on Wednesday as the Bank of England said it would intervene in the bond market to stabilize conditions.

The Bank of England said on Wednesday that it would buy as many long-dated government bonds as needed between now and October 14 to stabilise financial markets, and added that it would postpone next week's start of its gilt sale programme.

Domestic markets:

Back home, Indian equity market ended with steep losses on Wednesday, extending losses to the sixth trading day in a row. Global cues were weak amid persisted worries about aggressive policy tightening by the Fed and its impact on economic growth. The barometer index, the S&P BSE Sensex, declined 509.24 points or 0.89% to 56,598.28. The Nifty 50 index lost 148.80 points or 0.87% to 16,858.60.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,772.49 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,544.17 crore in the Indian equity market on 28 September, provisional data showed.

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