Market Commentary - Pre-Session
Market may open in red on subdued global cues As on : 19-Oct-23  08:40

GIFT Nifty:

Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could fall 23 points at the opening bell.

Global markets:

Overseas, Asian stocks fell across the board, taking cues from U.S. markets overnight, while the Bank of Korea kept its interest rates steady at 3.5% for the sixth time in a row.

South Korea's central bank kept its benchmark policy rate at 3.5%, in line with expectations. In its release, the Bank of Korea said that inflation in the country is ?projected to continue its underlying trend of a slowdown,? but there are uncertainties regarding the future path of inflation.

US stocks ended sharply lower on Wednesday as Treasury yields rose again and investors assessed the latest batch of quarterly corporate results and forecasts. Mounting tensions in the Middle East stoked risk aversion.

Investors have been worried about repercussions from the Israel-Hamas conflict that began October 7 with a Hamas attack on Israeli civilians and soldiers. U.S. President Joe Biden, during a lightning visit on Wednesday, pledged solidarity with Israel and said a deadly blast at a Gaza hospital seemed to have been caused by a rocket misfired by militants.

U.S. Treasury yields jumped to multiyear highs, with the 10-year Treasury yield breaking above 4.9% for the first time since 2007.

The U.S. economy showed ?little or no change? over the past six weeks, the Federal Reserve reported Wednesday in its Beige Book report. Spending was described as ?mixed? while prices increased ?at a modest pace,? the report said. Companies said they expect inflation to continue rising, thought at a slower pace.

Domestic markets:

Back home, domestic shares faced selling pressure on Wednesday, with most sectors experiencing losses. The barometer index, the S&P BSE Sensex tumbled 551.07 points or 0.83% to 65,877.02. The Nifty 50 index lost 140.40 points or 0.71% to 19,671.10.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,831.84 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,469.50 crore in the Indian equity market on 18 October, provisional data showed.

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