SGX Nifty down 280 points; here’s what changed for market while you were sleeping
STATE OF THE MARKETS
SGX Nifty signals negative start
Nifty futures on the Singapore Exchange traded 278 points, or 1.61 per cent, lower at 16,986, signaling that Dalal Street was headed for a negative start on Thursday.
- Tech View: Nifty50 on Tuesday tested the sub-16,850 level before staging a strong rebound. In the process, the index formed a bullish candle on the daily chart with a long lower wick, suggesting the emergence of buying at low. The sentiment has turned marginally positive but the index needs to defend the 16,800 level.
- India VIX: The fear gauge dropped more than 6 per cent to 21.36 level on Tuesday over its close at 22.82 on Monday.
Asian shares bleed in early trade
Asian stocks fell in the opening hours of trade on Thursday, tracking losses across Asia and Wall Street after Federal Reserve chief Jerome Powell all but confirmed the bank will lift interest rates in March. MSCI’s index of Asia-Pacific shares outside Japan was down by 1.80 per cent.
- Japan’s Nikkei plunged 2.64%
- South Korea’s Kospi tanked 2.89%
- Australia’s ASX 200 slumped 2.85%
- China’s Shanghai dropped 0.62%
- Hong Kong’s Hang Seng fell 2.15%
Wall Street gains evaporate
US stocks retreated Wednesday, erasing strong gains, after the Federal Reserve signaled an interest rate hike could be coming soon, while supply concerns stemming from tension between Russia and Ukraine saw prices touch highs not seen since 2014.
- Dow Jones shed 0.38% to 34,168.09
- S&P 500 dropped 0.14% to 4,349.93
- Nasdaq inched up 0.02% to 13,542.12
climbs as Fed flags hikes
The dollar hit multi-week highs against other major currencies on Thursday, bolstered after Federal Reserve chair Jerome Powell primed investors for U.S. rate hikes beginning in March. Overnight the Fed left its policy rate unchanged.
- Dollar Index edged up to 96.602
- Euro slipped lower to $1.2301
- Pound was bought at $1.3454
- Yen dropped to 114.74 per dollar
- Yuan exchanged hands at 6.3382 against the greenback
Oil falls on profit-taking
Oil prices fell on Thursday as investors cashed in profits from the 2% gains in the previous session after the U.S. Federal Reserve indicated an interest rate hike in March, leading to a technical correction in surging energy markets.
Brent crude futures slipped 31 cents, or 0.3 per cent, to $89.65 a barrel at 0122 GMT. US West Texas Intermediate (WTI) crude futures also eased 26 cents, or 0.3%, to $87.09 a barrel.
FPIs sell shares worth Rs 7,094.48 cr
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 7,094.48 crore, data available with NSE suggested. DIIs turned net buyers to the tune of Rs 4,534.53 crore, data suggests.
Q3 earnings today
Indus Towers, Punjab National Bank, Canara Bank, Colgate Palmolive (India), Dalmia Bharat, Coforge, Laurus Labs, CG Power, Nippon Life AMC, Bharat Heavy Electricals, LIC Housing Finance, Birlasoft, AIA Engineering and WABCO India are among the companies that will announce their December quarter results today.
Rupee: The rupee on Tuesday depreciated by 18 paise to close at a nearly one-month low of 74.78 against the US dollar due to month-end dollar demand from oil importers, forex outflows and a stronger dollar in overseas markets.
10-year bonds: India 10-year bond jumped 0.15 per cent to 6.66 after trading in 6.64 – 6.67 range on Tuesday.
Call rates: The overnight call money rate weighted average stood at 3.98 per cent on Tuesday, according to RBI data. It moved in a range of 2.10-4.50 per cent.