Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slump 124 points at the opening bell.
Overseas, Asian stocks declined Thursday following an overnight slide in US equities. The Bank of Japan's monetary policy decision is due Thursday, followed by a briefing from Governor Haruhiko Kuroda. A Bank of England decision is also Thursday.
US stocks dropped to a 15-month low after Jerome Powell failed to quell investor angst that the Federal Reserve's tightening policy will throttle economic growth. Investors had anticipated a less aggressive approach after U.S. stocks tumbled into a correction amid concern that global growth is slowing.
The US Federal Reserve raised interest rates on Wednesday, as expected, but forecast fewer rate hikes next year and signaled its tightening cycle is nearing an end in the face of financial market volatility and slowing global growth. The rate hike, the fourth of 2018, lifted the target range for the Fed's benchmark overnight lending rate by a quarter of a percentage point to a range of 2.25% to 2.50%.
Back home,domestic shares rose for seventh day in a row yesterday, logging modest gains on sustained buying demand in index pivotals. Sentiment was boosted by slide in crude oil prices and the Reserve Bank of India (RBI) announcing additional open market bond purchase. The Sensex rose 137.25 points or 0.38% to settle at 36,484.33, its highest closing level since 1 October 2018.
The trading activity on that day showed that the foreign portfolio investors (FPIs) bought shares worth a net Rs 1209.21 crore yesterday, 19 December 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 481.46 crore yesterday, 19 December 2018, as per provisional data.
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