Markets to make gap-down opening of F&O expiry session

Indian markets ended around 1.5 percent lower on Wednesday following in selloff in the global markets, dragged by losses in all key sectors but mainly banks and financials. Today, the markets are likely to get gap-down opening tracking sell-off in the global peers amid rising coronavirus cases. Investors may also need to wrestle with volatility due to October series derivative expiry. There will be some cautiousness with report that India has reported a daily jump of nearly 50,000 Covid-19 cases, even as the tally has soared past the 8-million mark. The country's death toll has mounted to 120,563. However, some support may come later in the day with report that in what could give a leg up to Prime Minister Narendra Modi’s clarion call to make India self-reliant or Atma Nirbhar, the government is considering to come up with more calibrated fiscal and monetary policy measures to accelerate growth to help economy recover from the impact of the pandemic. Meanwhile, the Commerce and Industry Ministry has released the next edition of its consolidated foreign direct investment (FDI) policy document, incorporating all the changes made over the past year. Besides, edible oils trade body SEA has urged the government not to tamper with the import duties or encourage PSUs to import edible oils at concessional duties in a move to contain domestic prices. Airline industry stocks will be in focus with the Directorate General of Civil Aviation’s statement that the suspension of scheduled international passenger flights has been extended till November 30 amid the coronavirus pandemic. There will be some reaction in real estate sector stocks with a private report stating that the Indian real estate sector seems to be getting back on feet after a long dry spell. Low home loan interest rates and discounted prices are piquing consumer interest while the re-opening of offices and an overall revival of business activity is aiding a revival in the office real estate market. There will be lots of important earnings announcements too, to keep the markets in action.

The US markets tumbled on Wednesday as a surge in coronavirus cases in the United States and Europe dashed hopes of a quick global economic recovery. Asian markets are trading in red on Thursday following an overnight plunge on Wall Street as coronavirus cases continue to surge in the West.

Back home, Indian equity benchmarks ended by over a percent each lower on Wednesday, weighed down by the weakness in banking, finance, metal and realty stocks amid weak global cues. Markets made slightly negative start but soon managed to wipe out all the losses to trade in green, as some respite came with Niti Aayog Vice Chairman Rajiv Kumar exuding confidence that India's economic growth would be in positive territory in the second half of this fiscal, and will do even better than a large part of the world in 2021-22. However, buying proved short-lived as markets once again entered into negative terrain and stayed in red for rest of the day, as traders turned anxious with the central bank’s statement that Indian states are racking up more debt to fund the prospect of wider budget deficits as they step up spending to fight the virus pandemic. Local gauges extended their losses in late afternoon session, as some anxiety remained among traders with Finance Minister Nirmala Sitharaman’s statement that there were visible signs of revival in the economy but the GDP growth may be in the negative zone or near zero in the current fiscal (FY21). She also said the economy saw a contraction in the April-June quarter, but demand has picked up in the festival season. Sentiments remained down-beat after UNCTAD said that Global foreign direct investment (FDI) flows fell 49% in the first half of 2020 compared to 2019 due to the economic fallout from COVID-19. Separately, Union Minister Piyush Goyal said the Commerce and Industry Ministry is working with states and local bodies to make it easier for businesses to get licences, permissions and approvals. He also said that the government is looking at addressing problems of quality so that domestic products can be recognised for high quality. Finally, the BSE Sensex fell 599.64 points or 1.48% to 39,922.46, while the CNX Nifty was down by 159.80 points or 1.34% to 11,729.60.