SGX Nifty sheds 60 points: Weak Asian markets, DII buying, corporate actions & more

Domestic stocks are likely to see negative start to Thursday’s trade after a weak commentary by US retailer Target hurt sentiment on Wall  Street overnight. Key Asian markets fell early on Thursday and India may follow the suit. All eyes would be on rupee and oil price movements. Here’s what you should know before the Opening Bell:  

Nifty outlook

Nifty has been consolidating for the last few days after a breakout on the daily timeframe. But no classic reversal pattern has been formed so far, said Rupak De at LKP Securities. The index is trading above its key short-term moving average and the trend looks positive as long as the NSE barometer holds above 18,250, De said. The analyst sees resistance for the index in the 18,440-18,450 range. 

SGX Nifty signals a negative start 

Nifty futures on the Singapore Exchange quoted 59.50 points, or 0.32 per cent, lower at 18,420.50, hinting at a negative start for the domestic market on Thursday. 

Asian markets fall in early trade

Asian markets declined in Thursday’s trade, tracking an overnight fall in US stocks, after a major US retailer Target warned of a softer holiday season. Hong Kong’s Hang Seng dropped 2.14 per cent; Korea’s Kospi declined 1.2 per cent while China’s Shanghai Composite shed 0.70 per cent. Japan’s Nikkei fell 0.35 per cent. 

US stocks end lower

US stocks settled lower on Wednesday, as a weak outlook from Target raised concerns about US retailers ahead of crucial holiday season. Dow Jones declined 39.09 points, or 0.12 per cent, to 33,553.83. S&P500 declined 32.94 points, or 0.83 per cent, to 3,958.79. Nasdaq Composite slipped 174.75 points, or 1.54 per cent, to 11,183.66. 

Corporate actions today

Thursday will see at least 12 stocks such as MRF, Bayer Cropscience, Gabriel India, IRFC, Page Industries, Quess Corp, RITES and Saksoft going ex-dividend. Shares of Dhanuka Agritech will go ex- share buyback while shares of Integra Essentia will go ex-rights today. 

Stocks in F&O ban

Shares of Balrampur Chini, BHEL, Delta Corp, GNFC, Indiabulls Housing Finance and SUN TV are banned in the F&O segment today. Derivative contract in a security is 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. 

DIIs buy shares worth Rs 1,437 crore

Provisional data available with NSE suggests FPIs were net sellers of domestic stocks to the tune of Rs 386.06 crore on Wednesday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 1,437.40 crore.

Rupee falls 35 paise against dollar

The rupee declined 35 paise to settle at 81.26 against the dollar on Wednesday on disappointing trade data and foreign fund outflows. Forex traders said a negative bias on risk aversion in global markets weighed on the local unit. The local unit witnessed an intraday high of 81.23 and a low of 81.58 during the session.

Also read: Wall Street ends down after Target outlook, Micron supply cut

Also read: Kotak Bank, HUL, Bajaj Finance, Tata Steel among top gainers & losers as market ends higher

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