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Stock markets likely to open weak amidst mixed global cues

08:47 AM Nov 23, 2021 | FPJ Web Desk

Trends on SGX Nifty indicate a negative opening for the indices with a 72 points loss.

Indian markets could open lower continuing the weakness from Monday despite mixed Asian markets today and despite mixed US markets on Monday, said Deepak Jasani, Head-Retail, HDFC Research.

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Nifty fell for the fourth consecutive session falling the most in terms of points in 7 months on November 22. At close, Nifty was down 1.96 percent or 348 points at 17417. Indian markets are the worst performers in the Asian region for the day.

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Jasani said, Nifty has extended the downturn, as expected, but the fact that it did not close at its low is some consolation. 17,360 and then 17,190 could be the supports for Nifty while 17613 could be a resistance in the near-term.

US stocks finish mixed on Monday

US stock benchmarks finished mixed on Monday as investors kicked off a holiday-shortened week, with the Dow industrials snapping a three-day losing streak and the Nasdaq Composite posting its biggest daily drop in almost two weeks. Equities gave up earlier gains that followed President Joe Biden’s decision to nominate Federal Reserve Chairman Jerome Powell to a second term as head of the US central bank, as widely expected.

The 10-year Treasury note yields 1.625 percent, up 9 basis points from 1.535 percent on Friday as investors continued to process higher inflation and higher rates in the COVID-19 recovery.

Elsewhere, there was some optimism for China policy easing, after the People’s Bank of China reportedly cut several phrases about policy restraint in a report.

Staying on the geopolitical front, Russian stocks tumbled amid U.S. and Europe concerns about a Russia troop buildup on Ukraine border. Russia's rouble slumped to four-month lows on Monday. Ukrainian government bond prices tumbled to their lowest in more than a year, while the Ukrainian currency slipped to seven-week lows against the dollar.

The Central Bank of Paraguay raised its monetary policy interest rate by 125 basis points to 4.0 percent on Monday, hiking the key rate for the second consecutive month in an attempt to curb inflation as the economy recovers from last year's COVID-19 lockdown.

Asian markets decline

Asia’s stock market slipped Tuesday after Treasury yields and the dollar jumped as Jerome Powell’s renomination to head the Federal Reserve fueled bets on quicker policy tightening.

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