Market to Be Volatile On Expiry Day

Yesterday the domestic markets opened gap down taking negative cues from the Asian peers. The weaken Chinese PMI numbers created bearish sentiments across the globe yesterday. However, the positive opening in the European markets made our equity market to recover from its bottom levels. The benchmark indices BSE Sensex and NSE Nifty closed higher by 171 and 34 points or by 0.67 and 0.43 per cent at 25823 and 7846 respectively. All the sectoral indices except couple of sectors were closed positive yesterday.

Yesterday the European markets recovered after the Volkswagen emission scam news turned bearish sentiments across Europe earlier. The positive macro economic data about Europe turned sentiments positive. The PMI for the region showed that the Europe is still on recovery path. The FTSE 100, DAX and CAC 40 closed higher by 1.62, 0.44 and 0.10 per cent yesterday.

However, the US equity markets opened in positive but ended in red over the bloom outlook for commodity. The slide in commodity prices continued yesterday over weak global economic outlook. The crude oil prices too slide yesterday turning bearish sentiments across US equity markets. The Dow Jones, S&P 500 and Nasdaq indices closed lower by 0.31, 0.20 and 0.08 per cent.

Today morning, the Asian markets showed nervous opening. The Japanese markets corrected over the bloom outlook of global economies after highlighted by US Fed reserve. However, the Australian market was trading positive with one per cent gains on the bourses. The Nikkie 225 and Hang Seng indices were trading down by 2.32 and 0.51 per cent respectively today morning.

The premarket barometer for Indian equity markets was too trading lower by 0.40 per cent today morning. We too expect the market to open flat, however, may see good amount of volatility on expiry day.