Sensex, Nifty Likely To Open Lower Today

Domestic stock markets are likely to start Thursday's session on a negative note a day after benchmark indices S&P BSE Sensex and NSE Nifty registered record closing highs. The Singapore Exchange (SGX) Nifty futures - an early indicator of the National Stock Exchange (NSE) Nifty index in India - declined as much as 33 points to touch 12,092.00 before gaining some ground. At 8:30 am, the SGX Nifty futures traded 18.00 points - or 0.15 per cent - lower at 12,107.00. 

Equities in other Asian markets swung between gains and losses amid concerns that a US-China trade deal may be hampered by tensions over Hong Kong.

US President Donald Trump on Wednesday signed into law legislation backing pro-democracy protesters in Hong Kong. China's Foreign Ministry promptly warned of unspecified "firm counter measures" in response. 

MSCI's broadest index of Asia-Pacific shares outside Japan fell almost 0.1 per cent. Japan's Nikkei, Hong Kong's Hang Seng and Shanghai blue chips flitted in and out of positive territory.

Back home, analysts expect some volatility ahead of the expiry of monthly derivatives contracts at the end of Thursday's session, and the release of macroeconomic data after market hours the next day. 

“Market sentiment remains positive on the global front with the likely settlement of first phase of deal between US and China. On the domestic side, strong FII (foreign institutional investor) inflows have provided the much needed support to the market in the absence of any major triggers,“ said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.

“While the current momentum is likely to continue for a while, we expect some volatility ahead of the monthly F&O expiry on Thursday and July-September GDP data to be released on Friday,” he said. 

On Wednesday, the Sensex and Nifty had surged to clock their highest closing levels ever recorded. The Sensex ended 199.31 points - or 0.49 per cent - higher at 41,020.61 and the broader Nifty settled at 12,100.70, up 63.00 points - or 0.52 per cent - from the previous close.