SGX Nifty indicates weak opening

6 Dec 2022 , 08:40 AM

SGX Nifty: Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slide 105 points at the opening bell. The Reserve Bank of India (RBI) started its bi-monthly policy review with the Monetary Policy Committee (MPC) meeting yesterday. The bi-monthly policy review is expected to come out on 7 December 2022. More than the quantum of rate hikes, domestic investors would watch out for RBIs commentary as it ramps up its efforts to curb inflation and push growth. On the political front, various exit polls on Monday predicted a big majority for the BJP in Gujarat and a dead heat in Himachal Pradesh where most pollsters gave an edge to the ruling party over the Congress. The counting of votes in both states will take place on December 8. Elections for the Himachal Pradesh assembly took place on November 12, while polling in Gujarat happened in two phases on December 1 and 5. Global markets: Overseas, Asian stocks are trading lower on Tuesday after Wall Street sold off overnight on fears that the Fed will keep increasing interest rates. Meanwhile, Beijing city announced negative Covid tests will no longer be required to enter most public areas, malls or residential areas, while bars and so-called KTV lounges, or karaoke bars. Several cities in China relaxed Covid testing rules in recent days. US stocks fell Monday on fears that the Federal Reserve may continue tightening until it tips the economy into a recession. Shares of Tesla slid on reports of a production cut in China. US services industry activity unexpectedly picked up in November. The ISM said its non-manufacturing PMI increased to 56.5 last month from 54.4 in October, which was the lowest reading since May 2020. Domestic markets: Back home, the equity benchmark indices ended almost flat on Monday, tracking mixed global cues. The barometer index, the S&P BSE Sensex, fell 33.9 points or 0.05% to 62,834.60. The Nifty 50 index added 4.95 points or 0.03% to 18,701.05. Foreign portfolio investors (FPIs) sold shares worth Rs 1,139.07 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,607.98 crore in the Indian equity market on 5 December, provisional data showed. Powered by Capital Market – Live News