Indian shares are set to open higher on Tuesday, after their worst session in a month a day earlier, while traders expect more volatility ahead of the US presidential elections.
The Gift Nifty futures were trading at 24,110, as of 07:53 a.m. IST, indicating that the benchmark Nifty 50 will open above Monday’s close of 23,995.35.
Both the Nifty 50 and BSE Sensex fell about 1.25% each on Monday, their biggest single-day losses since Oct. 3, while volatility spiked to a three-month high on uncertainty around the hotly-contested election in the US “We are of the view that the current market texture is weak but oversold hence a strong possibility of one intraday pullback rally is not ruled out from the current levels,” Shrikant Chouhan, head of equity research at Kotak Securities said.
Democrat Kamala Harris and Republican Donald Trump remain virtually tied in opinion polls ahead of polling on Tuesday and the winner might not be known for days after voting ends.
Volatility could rise further as investors await the election results to take fresh positions on a sectoral basis, according to two traders.
Indian shares post worst session in over a month
A victory for Harris is seen as neutral to positive for equity markets, while a Trump win is viewed as a positive for equities, due to the Republican’s tilt towards easing corporate tax rates, said three analysts.
Other Asian markets traded flat, while Wall Street fell overnight.
Foreign institutional investors net sold Indian shares for the 26th consecutive session on Monday, with outflows amounting to 43.30 billion rupees ($515 million).
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