Local stocks are likely to see negative opening despite the Union Cabinet yesterday, 28 August 2019, relaxing Foreign Direct Investment (FDI) norms in several sectors. Trading could be volatile as traders roll over positions in the F&O segment from the near month August 2019 series to September 2019 series. The August 2019 F&O contracts expire today, 29 August 2019.
Among stocks, Nestle India will be included and Indiabulls Housing Finance will be removed from the Nifty 50 index from 27 September 2019.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 11 points at the opening bell.
The Union Cabinet after market hours yesterday, 28 August 2019, relaxed Foreign Direct Investment (FDI) norms in several sectors. Cabinet approved 26% FDI with government approval for digital news media and 100% FDI via automatic route for coal mining and ancillary activities.
Cabinet eased local sourcing norms for FDI in single brand retail. Single-brand retailers allowed to open online stores before setting up brick-and-mortar shops. Cabinet approves 100% FDI in contract manufacturing and approved export subsidy for 60 lakh metric tonne of sugar.
Overseas, Asian stocks were trading lower on Thursday as economic turbulence from intensifying US-China frictions and the spectre of a no-deal Brexit drove investors to safer harbours.
US stocks climbed on Wednesday on gains in energy and financial shares. Meanwhile, the White House is scheduled to impose the first stage of U.S. tariffs on $300 billion worth of Chinese imported goods on Sunday, when China is set to respond with tariffs on U.S. products also.
In Europe, U.K. Prime Minister Boris Johnson announced plans to suspend parliament until October 14, less than three weeks before the Britain's scheduled exit from the European Union on October 31. The move is seen as increasing the chances of a no-deal Brexit that economists estimate could deal a significant blow to economic growth in the U.K and Europe.
Back home,key equity benchmarks snapped three-day winning streak yesterday, 28 August 2019 amid broad based selling pressure. Concerns about a global recession spoiled trading sentiment. The barometer index, the S&P BSE Sensex, fell 189.43 points or 0.50% to 37,451.84. The Nifty 50 index fell 59.25 points or 0.53% to 11,046.10.
The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 935.27 crore yesterday, 28 August 2019, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 359.32 crore yesterday, 28 August 2019, as per provisional data.
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