Meanwhile, Asian stocks dropped as investors weighed uncertainties about the omicron variant and looked to U.S. inflation data amid the Federal Reserve’s hawkish tilt
The market is expected to open on a cautious note as trends on the SGX Nifty indicate a flat opening for the index in India.
Indian markets could open flat in line with mixed Asian markets today and despite negative US markets on Friday, said Deepak Jasani, Head-Retail, HDFC Securities.
Nifty is expected to open flat around Friday’s close at 17,200. Since the last few days, Nifty has been volatile and has been trading in a big range. Overall bias in Nifty is negative and it may test its support level of 16,800 in the next few trading sessions, Gaurav Udani, Founder and CEO of ThincRedBlu Securities said.
Nifty broke a two day winning streak on Dec 03 and ended lower. Nifty was down 1.18% or 205 points at 17196.7 at close. In the process India was the worst performing market in the Asian region.
Nifty corrected after gaining for two days going against the global trend. While sell on rallies, especially in large caps continues, the broader market seems to have done well. On a weekly basis, Nifty gained 1 percent after two weeks of losses.
Meanwhile, Asian stocks dropped as investors weighed uncertainties about the omicron variant and looked to U.S. inflation data amid the Federal Reserve’s hawkish tilt.
Omicron remained a concern as the variant spread to nearly one-third of US states, though there were reports from South Africa that cases there only had mild symptoms, Reuters said.
Early trade was cautious as MSCI’s broadest index of Asia-Pacific shares outside Japan edged down 0.4 percent.
Japan’s Nikkei eased 0.6 percent, even as the government considered raising its economic growth forecast to account for a record $490 billion stimulus package. Chinese blue chips managed a 0.7 percent gain after state media quoted Premier Li Keqiang as saying Beijing will cut banks’ reserve requirement ratios (RRR) ‘in a timely way’.