Market may see weak opening

Local stocks are poised for gap-down opening following weak global cues.

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 130 points at the opening bell.

Global markets:

Asian stocks are trading lower as China kept its benchmark lending rate on hold. Markets in Indonesia and Malaysia are closed on Thursday for a holiday.

China on Thursday announced no changes to its benchmark lending rate, with the one-year loan prime rate (LPR) kept at 3.85%, while the five-year LPR was on hold at 4.65%.

In US, Wall Street finished lower on Wednesday after the Federal Reserve raised concerns that the US economic recovery from the devastating effects of the pandemic faced a highly uncertain path.

Apple became the first US-listed company to reach a $2 trillion market capitalisation on August 19, doubling in valuation in just over two years. The tech giant's shares have gained nearly 60% this year as the company overcame the shutdown of factories in China that produce the iPhone and the closure of its retail sales amid the coronavirus pandemic.

Federal Open Market Committee members agreed at their latest meeting in late July that the ongoing situation surrounding the coronavirus pandemic could weigh heavily on economic activity, employment, and inflation in the near term and was posing considerable risks to the economic outlook over the medium term, according to the meeting minutes. The U.S. central bank kept rates unchanged last month.

Domestic markets:

Back home, key equity barometers advanced for third straight session on Wednesday. Sentiment was boosted by hopes that the government will spend more to support economy. The barometer index, the S&P BSE Sensex rose 86.47 points or 0.22% at 38,614.79. The Nifty 50 index added 23.05 points or 0.2% at 11,408.40.

Foreign portfolio investors (FPIs) bought shares worth Rs 459.01 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 97.13 crore in the Indian equity market on 19 August, provisional data showed.

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