Firm opening on the cards; volatility may zoom due to F&O expiry

Trading could be volatile today as traders roll over positions in the F&O segment from the near month October series to November series. The October 2022 F&O contracts will expire today, 27 October 2022.

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 95 points at the opening bell.

Global markets:

Overseas, Asian stocks are trading higher on Thursday on growing expectations that major central banks could start slowing the pace of interest rate hikes in coming months.

The Bank of Japan begins its two-day meeting on monetary policy Thursday.

South Korea's third-quarter GDP grew 0.3% from the previous quarter, according to official advance data the slowest growth since the third quarter of 2021. China's industrial profits for January to September fell 2.3% compared to a year ago, the National Bureau of Statistics reported.

U.S. stocks dropped on Wednesday as investors parsed fresh economic data and disappointing earnings while mulling the Federal Reserve's path after the Bank of Canada announced a smaller-than-expected rate hike of 50 basis points.

Meanwhile, the European Central Bank (ECB) is expected to roll out another super-size rate hike Thursday to combat runaway inflation, despite concerns higher borrowing costs could deepen the pain of a looming eurozone recession. The ECB's 25-member governing council is likely to lift its key interest rates by 75 basis points for the second consecutive time, as per reports.

Domestic markets:

Back home, the equity barometers ended with modest losses on Tuesday, snapping their seven-day rising streak. The barometer index, the S&P BSE Sensex, declined 287.70 points or 0.48% to 59,543.96. The Nifty 50 index lost 74.40 points or 0.42% to 17,656.35. The market was closed on Wednesday for a local holiday.

Foreign portfolio investors (FPIs) sold shares worth Rs 247.01 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 872.88 crore in the Indian equity market on 25 October, provisional data showed.

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