Market may remain volatile due to F&O expiry

Trading could be volatile as traders roll over positions in the F&O segment from the near month July series to August series. The July 2020 F&O contracts expire today, 30 July 2020.

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 8 points at the opening bell.

The Ministry of Home Affairs (MHA) on July 29 issued new guidelines for opening up of more activities in areas outside containment zones, as a part of Unlock 3.0, which will come into effect from August 1. The Centre directed the states governments to allow/prohibit activities outside containment zones after proper assessment of the situation. As per the guidelines, yoga institutes and gymnasiums will be allowed to open from August 5, 2020. Schools, colleges and coaching institutions will remain closed till August 31, 2020.

Markets regulator Sebi on Wednesday gave relaxation of one month till September 15 to listed companies for submitting their June quarter results amid coronavirus pandemic.

Overseas, Asian stocks were trading mixed Thursday after the U.S. Federal Reserve left interest rates unchanged. On the economic data front, Japanese retail sales for June declined 1.2% as compared to a year ago, according to a preliminary report by the country's Ministry of Economy, Trade and Industry.

In US, stocks finished higher Wednesday, after the Federal Reserve left benchmark interest rates unchanged near zero and Fed Chair Powell reiterated his promise to provide support until the threat of the coronavirus to the U.S. economy has passed.

In a statement at the end of its policy-making meeting Wednesday, the Fed acknowledged that the economy has rebounded from the depths of March and April, when nearly all states closed down nonessential businesses. But it said the ongoing coronavirus pandemic will weigh heavily on economic activity, employment and inflation." The Fed announced no new policies in its statement. The central bank said it will also continue to buy about $120 billion in Treasury and mortgage bonds each month, which are intended to inject cash into financial markets and spur borrowing and spending.

Investors also were tuned into testimony in Washington from the nation's most prominent chief executives in the technology sector, who were fielding tough questions on their business practices and accusations they have used their market power to thwart competition, in a hearing before the House Judiciary Antitrust Subcommittee.

Treasury Secretary Steven Mnuchin said the Trump administration and Democrats remained far apart on the proposed fiscal stimulus bill.

In U.S. economic data, the trade deficit in goods dropped to $70.6 billion in June, a 6.1% decline in June from the previous month. The index of pending home sales soared 16.6% last month, helped by low borrowing rates, as compared with May, the National Association of Realtors reported Wednesday.

Back home, key barometer indices ended with steep losses on Wednesday, dragged by correction in index heavyweight Reliance Industries. Profit selling in auto and IT stocks negated strength in pharma stocks. The barometer index, the S&P BSE Sensex dropped 421.82 points or 1.10% at 38,071.13. The Nifty 50 index lost 97.70 points or 0.86% at 11,202.85.

Foreign portfolio investors (FPIs) sold shares worth Rs 352.62 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 505.62 crore in the Indian equity market on 29 July, provisional data showed.

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