Pre-Session: Market may see high volatility on F&O expiry

22-Feb-18: Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slide 85 points at the opening bell. Trading could be volatile as traders roll over positions in the F&O segment from the near month February 2018 series to March 2018 series. The February 2018 F&O contracts expire today, 22 February 2018.

Overseas, Asian shares slipped on the risk of faster hikes in US interest rates. US stocks ended a tumultuous session yesterday, 21 February 2018 firmly lower after minutes from the Federal Reserve's most recent policy-setting meeting sparked a fresh wave of volatility. Minutes of the Jan. 30-31 Federal Open Market Committee meeting showed that officials saw a stronger economy than at the end of 2017 and that more rate increases were in the offing.

An index that tracks US manufacturers rose to a nearly 3½-year high in February and a gauge for service-oriented companies hit a six-month peak, according to IHS Markit's flash PMI. The manufacturing index rose to 55.9 from 55.5. The services barometer climbed to 55.9 from 53.3.

Back home, key benchmark indices logged modest gains yesterday, 21 February 2018 as bargain hunting helped indices stage a comeback after prior three-day fall. The Sensex rose 141.27 points or 0.42% to settle at 33,844.86, its highest closing level since 16 February 2018.

The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 1214.18 crore yesterday, 21 February 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1375.48 crore yesterday, 21 February 2018, as per provisional data.

Among corporate news, Mahindra & Mahindra (M&M) said that it has signed a share subscription & shareholders agreement and a share purchase agreement for acquisition of up to 1,296 equity shares and subscribing upto 6,074 compulsory convertible cumulative preference shares which on an as-converted to equity share basis, would result in the company holding in aggregate 22.9% of the equity share capital of Carnot Technologies on a fully diluted basis. The announcement was made after market hours yesterday, 21 February 2018.

Carnot Technologies is an Indian company, which provides products and services related to internet connected devices for monitoring performance of vehicles and equipment. It had a turnover of Rs 1.2 crore for FY 2016-17.

Acquisition of shares in Carnot is expected to support company's businesses by developing information technology solutions for its products. The indicative time period for completion of the acquisition is 31 March 2018. The cost of acquisition is Rs 6.06 crore.

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