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Global mkts in green but Nifty may open expiry day in red

The Indian equity market is likely to open in the red yet again on Thursday morning. The SGX Nifty, an indicator of the market opening, was trading at 8155, down 24 points.

The market struggled to hold grounds on Wednesday ending with severe losses as Bihar polls also weighed in on sentiments. The Sensex ended down 213.68 points or 0.8 percent at 27039.76 and the Nifty slipped 61.70 points or 0.7 percent at 8171.20. About 1161 shares advanced, 1489 shares declined, and 186 shares were unchanged.

Globally, the Federal Reserve has left the door open for December indicating that the chances of a December rate hike have increased as growth picks up. The Nasdaq led gains with a 1.3 percent rise, while the Dow Jones and S&P 500 closed up 1.1 and 1.2 percent respectively.

European markets too closed sharply higher on Wednesday, as investor sentiment was boosted by earnings and a sharp rebound in oil prices.

Asian stocks mostly advanced on Thursday, encouraged by a positive Wall Street  handover following the Fed’s decision to leave interest rates near zero.

In other asset classes, crude prices surged over 6 percent overnight to almost USD 46 per barrel. Brent Crude too inched towards USD 49 dollars per barrel.

Back home, in key earnings today, Dr Reddy is expected to report a moderate quarter with the revenue and profit rising 11 percent. A healthy 20-22 percent constant currency growth in Russia is also expected.

Meanwhile, Ambuja Cements reported a weak set of earnings with the total income declining 4.2 percent to Rs 2,110 crore. The margins also missed estimates due to weak realizations and profits declined 35 percent due to higher contribution to district mineral fund, depreciation and lower other income.

And from the banking space, YES Bank may see a 27 percent growth in net interest income (NII). The asset quality ratios are likely to be maintained. The loan growth may continue being above industry average at 30 percent with the Net Interest Margins (NIM) expected to be above 3 percent.

Meanwhile, the Indigo IPO has tasted success on Dalal Street with the issue being fully subscribed on the second day thanks to strong demand from institutional investors.

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