Market may extend yesterday's slide on negative Asian stocks

The market is likely to open lower, extending yesterday's sharp slide triggered by uncertainty over the outcome of the upcoming US presidential election. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 33 points at the opening bell.

In overseas stock markets, most Asian stocks were trading lower with uncertainty over next week's US presidential election sending investors rushing for the sidelines. US stocks fell yesterday, 2 November 2016, with the S&P 500 recording its longest losing streak in five years after the Federal Reserve, as expected, kept interest rates unchanged. The Federal Reserve yesterday, 2 November 2016 signaled that the time for another interest-rate hike is approaching and it doesn't need much more evidence before moving. The Fed policy committee voted 8 to 2 to maintain interest rates in a range of 0.25 to 0.5%. The Fed said inflation has been moving up toward its 2% target since the beginning of the year. Meanwhile, polls showed a tightening presidential race. A latest poll reportedly showed Republican nominee Donald Trump taking a one-point lead over rival Hillary Clinton. Investors generally view Clinton as a known quantity, but there is deep uncertainty about what a Trump win might mean for US economic policy, free trade and geopolitics.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 667.37 crore yesterday, 2 November 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 407.27 crore yesterday, 2 November 2016, as per provisional data.

On the macro front, Markit Economics will announce the India Services PMI data for October 2016 today, 3 November 2016. The seasonally adjusted Nikkei India Services Business Activity Index registered 52 in September down from August's 43-month high of 54.7.

Ambuja Cements will announce its Q3 September 2016 result today, 3 November 2016.

Hero MotoCorp announced that it dispatched 6.63 lakh units in October 2016, its third consecutive month of six lakh plus sales. The announcement was made after market hours yesterday, 2 November 2016.

Key benchmark indices suffered severe setback yesterday, 2 November 2016, in sync with weak global stocks following uncertainty over the outcome of the upcoming US presidential election. The Sensex lost 349.39 points or 1.25% to settle at 27,527.22, its lowest closing level since 8 July 2016.

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