InvestorQ : What is your view for the stock markets for Thursday 06th October 2022?
Mitali Bhutta made post

What is your view for the stock markets for Thursday 06th October 2022?

diksha shah answered.
2 months ago

On Thursday, the stock markets after a day break due to Dussehra and the markets are likely to react to the OPEC decision to cut oil supplies by 2 million barrels per day (bpd). This is likely to be price accretive for oil, not great news for India. India will also await the inflation data in the coming week before taking a view on markets.

On Tuesday the markets saw a sharp rally with the Nifty gaining over 385 points and the Sensex rallying close to 1,250 points. For Thursday, the early morning trends are looking positive, despite some pressure on the Dow and the NASDAQ overnight. However, oil could hold the key to the market trends as it will impact rupee value.

Foreign portfolio investors were net buyers in equities at a level of Rs.1,345 crore while the domestic funds and LIC bought stocks worth Rs.946 crore on Tuesday. The FPIs have started the first two days of October on a positive note and history is on the side of FPI flows in October, which has traditionally been a very positive month for FPI flows.

On Wednesday, the Dow was marginally down by 42 points while the NASDAQ closed lower by 28 points. Overall, the equity markets reflected the uncertainty about oil prices. The SGX Nifty is higher by 92 points in early trades and hints at a strong opening for the markets. Most of Asia looks negative mixed in early trades on Thursday.

The early morning cues are positive but a lot will depend on how oil prices pan out and pressure is expected during the day. The 2 million bpd cut by the OPEC plus is sizable and is likely to have an impact on the oil prices. Higher prices will be negative for Indian markets considering that nearly 85% of India’s daily crude needs are imported from other countries. Oil could also impact the rupee value, where it could look to breach the 82 mark.