SGX Nifty down 66 points: Asian markets, dollar movement, Q3 earnings, FPI flows & more

 

Domestic stock indices are likely to open lower on Thursday, despite a rally in global markets. US stocks rallied after the US Fed’s outcome while Asian stocks also cheered a lower 25 basis points Fed rate hike. Back home, Adani Group stocks are likely to remain at focus after the withdrawal of its Rs 20,000 crore FPO by Adani Enterprises. Here’s what you should know before the opening bell:

Nifty outlook

After showing a gradual upside bounce in the last couple of sessions, Nifty witnessed extreme volatility by moving into large intraday swings on Wednesday. “Nifty may stay volatile in the short-term. Having moved up smartly from lows in the last few occasions, there is a possibility of it retesting the crucial resistance of 17,800 level in the near term. A further sustainable upside could occur only above this hurdle,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

SGX Nifty signals a negative start

Nifty futures on the Singapore Exchange quoted 65.50 points, or 0.37 per cent, lower at 17,634.50, hinting at a negative start for the domestic market on Thursday.

Asian shares gain on Fed outcome

Asian stocks rose at open on Thursday, tracking the big gains in US stocks after the Fed’s monetary policy outcome and Fed Chair Jerome Powell’s dovish commentary. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.82 per cent. Japan’s Nikkei gained 0.25 per cent; Australia’s ASX 200 added 0.35 per cent; New Zealand’s DJ was jumped 1.35 per cent; China’s Shanghai shed 0.26 per cent; Hong Kong’s Hang Seng inched up 0.60 per cent; and Korea’s Kospi added 0.50 per cent.

Oil prices rise in early trade

Oil prices rose in early Asian trade on Thursday after the US Federal Reserve raised interest rates by 25 basis points, sending the dollar lower. Brent crude futures rose 56 cents, or 0.7 per cent, at $83.40 a barrel while West Texas Intermediate (WTI) US crude futures rose 65 cents, or 0.8 per cent, to $77.05 a barrel.

Dollar falls against major currencies

The dollar tumbled on Thursday after the US Federal Reserve said it had turned a corner in the fight against inflation, giving markets a confidence boost that the end of its rate-hike campaign is near. The US dollar index fell to a fresh nine-month low of 100.80. Against the Japanese yen , the dollar fell 0.55 per cent to 128.21. The euro rose to a roughly 10-month peak of $1.1034 on Thursday, while sterling was last 0.19 per cent higher at $1.2399.

US stocks settle higher

A gauge of global stocks rallied and the US dollar slumped on Wednesday after the Federal Reserve raised its target interest rate by the expected 25 basis points but comments from Chair Jerome Powell were interpreted as dovish by the market. The Dow Jones Industrial Average rose 6.92 points, or 0.02 per cent, to 34,092.96, the S&P 500 gained 42.61 points, or 1.05 per cent, to 4,119.21 and the Nasdaq Composite added 231.77 points, or 2 per cent, to 11,816.32.

Q3 earnings today

Housing Development Finance Corporation, Titan Company, Dabur India, Tata Consumer Products, IDBI Bank, Berger Paints (India), Max Healthcare Institute, Aditya Birla Capital, Godrej Properties, APL Apollo Tubes, Crompton Greaves Consumers, Coromandel International, Apollo Tyres and Dr Lal Pathlabs are among the companies that will announce their results for the December 2022 quarter.

Stocks in F&O ban

Ambuja Cements has been put under F&O ban by National Stock Exchange (NSE) for Thursday, February 2. Derivative contracts in a security are banned when it crosses 95 per cent of the market-wide position limit (MWPL). No new positions can be created in the derivative contracts of said security. This prohibition is lifted when the open interest in the stock drops below 80 per cent of the MWPL across exchanges.

FPIs buy  shares worth Rs 1,785 crore

After sharp selling in January, provisional data available with NSE suggests FPIs turned net buyers of domestic stocks to the tune of Rs 1,785.21 crore on Wednesday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 529.47 crore.

Rupee gains 8 paise against dollar

The rupee appreciated 8 paise to close at 81.80 against the US dollar on Wednesday after Finance Minister Nirmala Sitharaman presented the Union Budget for 2023-24. Fresh foreign capital inflows supported the domestic unit, forex traders said. However, investors stayed cautious ahead of the outcome of the US Federal Reserve meeting later in the evening, they added.

Adani Enterprises calls off FPO

Adani Group’s flagship company Adani Enterprises has announced to withdraw its Rs 20,000 crore follow-on public offering (FPO), citing moral grounds after the unprecedented crash in stock prices. The decision has been taken after its shares plunged about 30 per cent in Wednesday’s session. The money will be returned back to the bidders.

Note: With inputs from PTI, Reuters and other agencies

Also read: Hindenburg impact: Adani Group stocks crash; group m-cap down Rs 7.4 lakh crore in 5 days

Alsor read: Adani Enterprises calls off Rs 20,000-cr FPO, money to be returned to investors

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