SGX Nifty indicates firm opening; F&O expiry may trigger volatility

November 24,2022

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 86 points at the opening bell.

Trading could be volatile as traders roll over positions in the F&O segment from the near month November series to December series. The November 2022 F&O contracts will expire today, 24 November 2022.

Global markets:

Overseas, Asian stocks are trading higher on Thursday as the U.S. Federal Reserve said they expect to switch to smaller rate hikes “soon,” according to minutes released on Wednesday.

The Bank of Korea raised its benchmark interest rate by 25 basis points to 3.25%, a smaller hike than its previous move and widely in line with expectations.

US markets are closed on Thursday for the Thanksgiving holiday and will close early on Friday. Stocks rose Wednesday and notched the second straight day of gains as investors cheered minutes from the Federal Reserve that signaled a slower pace of interest rate hikes ahead.

The report showed that the central bank sees progress in its fight to lower inflation and expects to slow the pace of interest rate hikes going forward. “A substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate,” the minutes stated. “The uncertain lags and magnitudes associated with the effects of monetary policy actions on economic activity and inflation were among the reasons cited regarding why such an assessment was important.”

Domestic markets:

Back home, the headline equity indices ended with small gains on Wednesday. The barometer index, the S&P BSE Sensex, rose 91.62 points or 0.15% to 61,510.58. The Nifty 50 index added 23.05 points or 0.13% to 18,267.25.

Foreign portfolio investors (FPIs) sold shares worth Rs 789.86 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 413.75 crore in the Indian equity market on 23 November, provisional data showed.

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