Sensex, Nifty May See Volatility Amid F&O Expiry

Indian shares look set to open higher on Thursday, after having suffered heavy losses in the previous session.

That said, volatility cannot be ruled out due to weak global cues and the impending expiry of February series derivative contracts.

Benchmark indexes Sensex and Nifty both fell over 1 percent each on Wednesday while the rupee fell by 3 paise to close at 82.92 against the dollar.

Asian markets followed Wall Street lower this morning while Treasuries and the dollar strengthened as investors awaited the Federal Reserve’s key inflation metric due later in the day for clues on the Fed’s rate trajectory.

The dollar was firm, and gold ticked higher while oil prices were little changed after settling lower overnight on data showing a larger than expected increase in U.S. crude inventories.

U.S. stocks ended lower overnight as revised data showed the U.S. economy grew by slightly less than previously estimated in the fourth quarter of 2023, raising optimism the Fed can cut rates sooner.

The Dow finished marginally lower to extend losses for the third consecutive session while the S&P 500 eased 0.2 percent and the tech-heavy Nasdaq Composite shed 0.6 percent.

European stocks ended mixed on Wednesday ahead of key U.S., Eurozone and Chinese economic data due this week.

The pan European STOXX 600 dropped 0.4 percent as a measure of Eurozone economic sentiment deteriorated to a three-month low.

The German DAX rose 0.3 percent and France’s CAC 40 inched up marginally while the U.K.’s FTSE 100 slipped 0.8 percent.

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