“The market is pricing in the risks associated with this scenario and the potential impact of the government’s shift towards socialist policies, which is leading to selling,” said Yashovardhan Khemka, senior manager, research and analysis at Avance Holdings.
The breakdown of pre-market transactions is as follows:
Market situation
Gift Nifty (formerly SGX Nifty) off to a strong start
GIFT Nifty futures rose 103 points or 0.47 per cent to trade at 22,050.
Tech View
“We believe the current market structure is highly volatile and uncertain. Hence, traders are advised to remain cautious in the next few trading sessions,” said Shrikant Chauhan, head of equity research at Kotak Securities.
India VIX: India VIX, a gauge of market fear, fell 27.75% to settle at 26.75 levels.
Adian Market
Hang Seng Index futures rose 0.2%, Japan’s Topix fell 0.9%, Australia’s S&P/ASX 200 was little changed and Euro Stoxx 50 futures fell 1%.
US Stocks
U.S. stocks closed slightly higher on Tuesday following the release of weaker-than-expected labor market data, which strengthened expectations that the Federal Reserve may cut interest rates. Tuesday’s figures showed that U.S. job openings fell to their lowest level in more than three years in April, indicating easing labor market conditions and consistent with expectations that the Federal Reserve will cut interest rates in the near future. As a result, U.S. Treasury yields fell after the report was released.
Falling oil prices
Oil prices were slightly lower shortly after the Asian trade opened on Wednesday after an industry report showed U.S. crude and fuel stockpiles were rising, raising concerns about rising demand.
Brent crude futures were down 14 cents, or 0.2 percent, at $77.38 a barrel as of 0005 GMT. U.S. West Texas Intermediate crude futures were down 18 cents, or 0.3 percent, at $73.07 a barrel.
Today’s F&O Prohibited Stocks
G
Securities under prohibition in the F&O segment include companies whose securities exceed 95% of the market-wide position limit.
FII/DIIAction
Foreign portfolio investors made a net sale of Rs 12,436 crore on Tuesday. DIIs also sold shares worth Rs 3,318 crore.
Rs.
The Indian rupee fell 37 paisa against the US dollar on Tuesday to close at 83.51 rupees after the ruling Bharatiya Janata Party fell short of a majority in India’s Lok Sabha elections.
FII Data
FII net shortfall increased to Rs 3.55 trillion on Tuesday from Rs 1.96 trillion on Monday.
