Market may spurt in early trade; F&O expiry in focus

Trading could be volatile today as traders roll over positions in the F&O segment from the near month April series to May series. The April 2021 F&O contracts will expire today, 29 April 2021.

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 138 points at the opening bell.

On the political front, with West Bengal slated to hold its eight and final phase of polling today, all eyes will be glued to the exit polls for four states and one Union Territory. Exit polls for West Bengal, Assam, Tamil Nadu, Kerala and Puducherry can be published today an hour after polls close. Votes will be counted on 2 May.

Global markets:

Overseas, Asian stocks are mostly trading higher on Thursday, as investors react to the U.S. Federal Reserve's decision to keep its easy money policy in place. Markets in Japan are closed on Thursday for a holiday.

Wall Street ended lower on Wednesday after the U.S. Federal Reserve held interest rates and its monthly bond-buying program steady and gave no sign it was ready to reduce its support for the recovery.

The Fed left its benchmark short-term rate near zero, where it's been since the pandemic erupted nearly a year ago, to help keep loan rates down to encourage borrowing and spending. It also said in a statement after its latest policy meeting that it would keep buying $120 billion in bonds each month to try to keep longer-term borrowing rates low.

In a statement Wednesday, the Fed said the economy and job market have strengthened, and while inflation has risen, Fed policymakers ascribed the increase to temporary factors.

Domestic markets:

Back home, domestic equity market extended gains for the third consecutive session, boosted by strong Q4 results and vaccine optimism. The S&P BSE Sensex, jumped 789.70 points or 1.61% at 49,733.84. The Nifty 50 index gained 211.50 points or 1.44% at 14,864.55.

Foreign portfolio investors (FPIs) bought shares worth Rs 766.02 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 436.20 crore in the Indian equity market on 28 April, provisional data showed.

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