Indian stock markets are expected to open on a flat negative note on Friday, which will see the start of new rounds of derivatives on the NSE. In addition to high valuations, analysts say the Reserve Bank of India’s plans to drain liquidity are also impacting sentiment.
S Ranganathan, head of research at LKP Securities, said: “The expiration day witnessed the realization of global profits ranging from retail lenders to FMCGs and across metal names. continued excitement around primary market offerings, the Bulls were doing nothing good for them as sector indices ended in the red. Both benchmarks fell 2% late in the afternoon due to inflationary pressures and their likely impact on demand. Cement stocks were a notable exception on Thursday, however. “
Analysts said REITs were not only selling in the cash segment, but also added bearish positions in Nifty futures, signaling that the worst may not be over.
With retail investors turning to the IPO market and domestic institutional investors unwilling to commit huge sums, there is no resistance to the sale by foreign investors, analysts added.
The SGX Nifty at 17,904 signals a flat open for Nifty futures, which closed Thursday at 17,913. Asia-Pacific stocks are down at the open Thursday even as US stocks closed on Thursday. sharp rise.
Rahul Sharma, Co-Founder of Equity99, “The markets have been volatile and after Thursday’s move we may see a further decline. Investors are urged to be cautious given the earnings season as well.”
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said: After a long time, the Nifty closed below the 20-day SMA, which is overall negative for the market. For day traders, the short term trend is weak as the market is temporarily in an oversold situation, but a rapid recovery cannot be ruled out.