Moneycontrol Bureau
Indian market may continue to see selling pressure Thursday in tandem with global peers. Foreign institutional investors (FII) remained sellers this month. FIIs sold over Rs 5700 crore in cash market in November. FIIs have sold in 12 of 19 sessions and domestic peers have bought in 16 of 19 sessions in October.
Global markets fear a Donald Trump win in US Presidential election while the Federal Reserve kept interest rates unchanged in its last decision before the polls. The central bank maintained status quo in interest rates but signalled it could hike in December, as equities remained pressured by uncertainty over the impending US elections.
Indian benchmark indices ended at over 3-month closing lows Wednesday. The 30-share BSE Sensex was down 349.39 points or 1.25 percent at 27527.22 and the 50-share NSE Nifty fell 112.25 points or 1.30 percent to 8514. Nifty may test key resistance level of 8500. Ambuja Cements and Dr Lal Path Labs will announce Q2 earnings today.
Among global markets, Asia shares eased as MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.1 percent in early trade, while Australia's market lost 0.5 percent. Tokyo markets were closed for a holiday, which was likely just as well as the Nikkei would have been hard pressed by the rising yen.
Wall Street stayed weak with the S&P 500 heading towards its seventh straight session of declines, its longest such streak in about five years. 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.
The dollar dropped, extending the longest losing streak since July, as currency traders seeking a clearer signal that Federal Reserve policy makers are determined to raise rates this year were left disappointed. Investors are also coping with uncertainty just six days before the tightening US election and two days before the October employment report.Crude oil prices tumbled nearly 3 percent after a record weekly build in US crude stocks added to worries of all-time highs in OPEC production that suggested little could be done to rein in a global glut. Crude inventories rose by 14.4 million barrels for the week ended October 28 - the biggest ever rise in US. crude stocks in a week, overwriting a 2012 record.
Gold prices briefly hit highest level at USD 1309 an ounce for the first time since October 4.
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