Market likely to be flat ahead of F&O expiry; SBI in focus
Japanese stocks rose to a near 11-month high on a weaker yen and after Wall Street shares closed at record highs overnight, while the dollar's bull run continued as upbeat economic data took US bond yields to multi-year highs.
he market is likely to be flat ahead of November Futures and Options (F&O) expiry as the SGX Nifty indicates a tepid start on Dalal Street. In Asia, Japan drove gains amidst the dollar surge. Japanese stocks rose to a near 11-month high on a weaker yen and after Wall Street shares closed at record highs overnight, while the dollar's bull run continued as upbeat economic data took US bond yields to multi-year highs. Shares of Japan's banks, along with some of their global peers, have had a boon following Trump's win, buoyed by the rise in yields and prospects of improved business opportunities under the next US administration. MSCI's broadest index of Asia-Pacific shares outside Japan pulled back from a 12-day high scaled the previous day to dip 0.2 percent facing the prospect of higher US interest rates diverting money from emerging markets. The Dow and the S&P 500 eked out record high closes ahead of the Thanksgiving holiday, helped by gains in industrial stocks, though losses in technology shares limited the advance and weighed on the Nasdaq. Back home, the NSE Nifty managed to hold 8000 level for the second consecutive session Wednesday ahead of expiry of November futures & options contracts tomorrow. The 30-share BSE Sensex was up 91.03 points at 26051.81 and the 50-share NSE Nifty gained 31 points at 8033.30. The market breadth was strong as about 1920 shares advanced against 671 declining shares on the Bombay Stock Exchange. SBI os likely to be focus as it has slashed bulk term deposit rates between 125-190 basis points across various tenors. Bulk deposits cover funds over Rs 1 crore but less than Rs 10 crore. SBI CFO tells CNBC-TV18 that she sees possibility of a steeper reduction in lending rates going forward.