The key domestic benchmarks are tipped to open little changed today
amid caution ahead of the expiry of the January Futures & Options (F&O)
contracts. Further, a bearish trend in fellow Asian markets and a weaker closing
at Wall Street overnight even as the US Federal Reserve maintained its benchmark
rate near zero amid heightened global risks, may weigh on sentiment at Dalal
Street. China’s Shanghai Composite plunged as regulators increased scrutiny on
margin loans, Hang Seng tumbled while Japan’s Nikkei 225 was trading lower even
as a weaker yen boosted the appeal of exporter stocks. The Fed maintained its
pledge to be “patient” over monetary tightening amid rising risks to the world’s
biggest economy from a global slowdown. The world’s top central bank said that
it will take into consideration “international developments” for deciding upon
the timing to raise interest rates for the first time since 2006. Markets may
see heightened volatility today as traders roll over their positions on the day
of the January F&O contracts expiry.
