Domestic equities traded positively during Wednesday, although the Sensex and Nifty pared early gains amid profit booking at higher levels. Analysts say Indian equities are expected to continue their gradual upmove as geopolitical concerns ease and expectations build around a potential agreement to end the West Asia conflict. The sharp decline in crude oil prices has improved sentiment, reducing concerns around inflation and external sector pressures.
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a positive start
GIFT Nifty on the NSE IX traded higher by 129.50 points, or 0.54 per cent, at 24,085, signaling that Dalal Street was headed for a positive start on Thursday.
- Tech View: On the downside, 24,000 is expected to act as immediate support. A breach below this level could trigger a correction towards 23,800. Conversely, a decisive move above 24,100 may pave the way for a rally towards 24,300 and higher. Additionally, the weekly BSE options expiry is likely to add to market volatility.
- India VIX: India VIX, which is a measure of the fear in the markets, fell 1.3% to settle at 13.19 levels.
S&P 500, Nasdaq end lower
The S&P 500 and Nasdaq closed down by more than 1% on Wednesday, as traders bet that the Federal Reserve's next move would be a rate hike after new Fed Chair Kevin Warsh highlighted the need to tame inflation and other policy makers projected rising interest rates later this year.
Asian shares gain
Contracts on the S&P 500 climbed 0.8% while a gauge of Asian stocks rose 0.5%. Nasdaq futures jumped more than 1%. The moves followed a 1.2% drop in the US benchmark on Wednesday after the Federal Reserve signaled rates may need to rise further to contain inflation. Brent crude fell more than 1% early in Asia, dropping below $79 a barrel.
- S&P 500 futures rose 0.8% as of 9:28 a.m. Tokyo time
- Hang Seng futures fell 0.3%
- Japan’s Topix rose 1.6%
- Australia’s S&P/ASX 200 was little changed
- Euro Stoxx 50 futures rose 0.6%
Oil slips
Oil prices fell in early trading on Thursday after the U.S. and Iran signed an interim agreement that would end the Iran war, reopen the Strait of Hormuz and waive U.S. sanctions on Tehran's oil, resolving the largest energy supply disruption in history.
Dollar gains
The U.S. dollar clung to a more than two-month high on Thursday as markets ramped up wagers on Federal Reserve rate hikes this year, heaping fresh pressure on the Japanese yen toward intervention territory.
Stocks in F&O ban today
1) Kaynes
Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
FII/DII action
Foreign portfolio investors net bought shares worth Rs 101 crore on Wednesday. DIIs, meanwhile, were net buyers at Rs 1561 crore.
Rupee
The Indian rupee ended broadly unchanged against the US dollar on Wednesday, coming down from a six-week high and giving up almost all of the day's gains that were triggered by a crash in oil prices.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
