SGX Nifty drops 60 pts: Asian markets; oil prices, Dharmaj Crop Guard IPO & more

Domestic stocks are likely to see a mixed start to Monday’s trade, thanks to weak cues from Asia, as rare Chinese Covid protests raise concerns over the health of the world’s second largest economy. Stocks in China and Hong Kong tumbled while US futures were also trading half-a-per cent lower. At home, all eyes would be on the IPO of agrochemical company Dharmaj Crop Guard.  Here’s what you should know before the Opening Bell:  

Nifty outlook

Nifty on Friday settled above the 18,500 level. It formed a Bullish Engulfing candle on the weekly chart. The 50-pack index is trading close to the overbought zone as per the 14-day RSI and analysts believe the level of 18,605 may act as a key hurdle for the index while they expect the range of 18,500-450 to act as support for the index. 

SGX Nifty signals a weak start 

Nifty futures on the Singapore Exchange quoted 61 points, or 0.33 per cent, lower at 18,600, hinting at a muted start for the domestic market on Monday.  

Asian markets tank up to 4%

Asian stocks fell on Monday as protests in major Chinese cities against zero-Covid policy raised worries about the management of the virus in the world’s second-largest economy. Hong Kong’s Hang Seng sank 4 per cent, China’s Shanghai Composite plunged 1.9 per cent while Japan’s Nikkei slipped 0.40 per cent. South Korea’s Kospi index declined 1.35 per cent in early trade.  

US stocks end mostly lower

US stocks settled mostly lower on Friday in a holiday-shortened trading session that was focused on retailers as Black Friday sales kicked off against the backdrop of high inflation and cooling economic growth, Reuters reported. Dow Jones advanced 152.97 points, or 0.45 per cent, to close 34,347.03. S&P500 index edged 1.14 points, or 0.03 per cent, lower at 4,026.12. Nasdaq Composite index shed 58.96 points, or 0.52 per cent, to 11,226.36.

Oil drops on China Covid protests

Oil futures fell more than $1 early on Monday as protests in top importer China over strict Covid-19 curbs fuelled demand worries while investors remained cautious ahead of an agreement on a Western price cap on Russian oil and an OPEC+ meeting, Reuters reported.  US crude fell 0.25 per cent to $76.08 a barrel. Brent crude dipped 0.16 to $83.48 per barrel. 

Corporate actions today

Monday will see two stocks namely 7NR Retail and Janus Corporation going ex-bonus. Shares of Family Care Hospitals will go ex-dividend today. Aptus Value Housing Finance India will hold a board meeting on interim dividend. Valecha Engineering will announce its quarterly results today. 

Dharmaj Crop Guard IPO to kick off today

The IPO by agrochemical company Dharmaj Crop Guard will kick off on Monday. The company, which is into the business of manufacturing, distributing, and marketing of a wide range of agro chemicals such as insecticides, fungicides, and herbicides raised garnered Rs 74.95 crore from anchor investors ahead of its initial public offering on Monday. The company informed the bourses that it allocated 31,62,540 shares to anchor investors at Rs 237 per share on Friday. 

Stocks in F&O ban

No security is banned in the F&O segment today. Derivative contracts in a security are banned when they cross 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. 

FPI buy shares worth Rs 369.08 crore

Provisional data available with NSE suggests FPIs were net buyers of domestic stocks to the tune of Rs 369.08 crore on Friday. Domestic institutional investors (DIIs) were sellers of equities to the tune of Rs 295.92 crore.

Rupee ends flat at 81.71 against dollar

The rupee settled almost flat at 81.71 against the US currency on Friday as month-end dollar demand from oil importers offset gains from a weak greenback and forex inflows. Forex traders said positive domestic equities and improved risk sentiment also supported the local unit.

Also read: Stocks, oil skid as China’s COVID protests roil sentiment

Also read: Nifty on the verge of hitting all-time high. Will the recent gains sustain? 

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