Indian stock markets are poised for a cautious opening on Thursday as SGX Nifty futures recovered partially from opening losses in the morning as trading progresses in the Singapore Stock Exchange. The index representing Indian stocks was trading 0.20% down an hour before the Indian markets opened.
Asian investors show concerns over the new virus variant threatening economic recovery, as reflected in morning trade across the region.
“Indian markets could open mildly lower in line with mixed Asian markets today and sharply negative US markets on Wednesday,” said a note from HDFC Securities Retail Research.
Global equities, led by Wall Street, reacted sharply on Wednesday over the new coronavirus variant Omicron with the first case reporting in the United States, while investors also took note of the Federal Reserve’s comments on inflation. Dow lost 1.3%, S&P 500 1.9% and Nasdaq 1.8%.
“ Looking at the data, we expect Nifty to head towards 17250-17300 on the weekly expiry day. However, from a positional perspective, the index needs to close above 17300 for broader market participation,” said Ruchit Jain, trading strategist at 5paisa.com.
Key things to note before trade
- Coal India production numbers rose by 4% in November
- Hero Motocorp reported a 41% drop in November sales
- Tata Power arm to build a solar and battery storage project worth INR9.45bn for Solar Energy Corporation of India
- Mahindra & Mahindra reported a 6% decline in total sales in November
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.