Sensex, Nifty to open with negative bias

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The domestic stock market is likely to open in a narrow range on Friday with a bearish bias. SGX Nifty at 18220 indicates an open from flat to negative, such as Nifty futures closed Thursday at 18,294.65.

Analysts expect the stock market to remain in the consolidation phase on the back of buying by foreign portfolio investors.

However, global stocks, Especially the US marketunder deep pressure such as Almost every day one bank collapses. It doesn’t seem that long ago a global banking crisis set Wall Street back by many years.

Today, US stocks are falling as banking turmoil led to the rapid collapse of PacWest and Western Alliance. Steady inflation and a slowly decelerating labor market will make it difficult for the Fed to cut interest rates anytime soon, said Edward Moya, senior analyst, Americas, at OANDA.

Also read: Indian Stock Earnings Record as US Recession Approaches: Bank of America Securities

He added, “Financial stability concerns are not going away any time soon and this will continue to fuel calls that we are heading towards a recession that will be much more damaging than some expect.”

US benchmark indices fell in the region of 0.5 per cent and 0.9 per cent.

Analysts predict that the Indian markets may also come under pressure soon. but, Strong Buy by FPIs It will keep the market in range, they added.

Vinod Nair, Head of Research Geojit Financial ServicesHe said, “After a widely expected rate hike by the Federal Reserve and continued foreign support, domestic stocks resumed their bullish momentum, driven by gains across major sectors. However, the US market faced losses as the Fed reiterated its concerns about rising inflation despite Toning down his language on future rate hikes. Signs of resurgence of contagion fears in regional US banks also weighed on global market sentiment.”

Emkay Global Research, which hosted a roundtable with a conference led by Madabe Arora, said it believes India will likely see inflation below 5 percent early this year, with an average CPI rate of 5.2 percent in year CY23. RBI work, Normal monsoon yearAddressing supply-side constraints will help mitigate inflation.