Domestic equities ended lower on Tuesday, with the Nifty declining 0.7%. Rising crude oil prices, fresh Foreign Institutional Investor outflows and weak global markets weighed on sentiment, while the weekly derivatives expiry added to market volatility. Analysts say Indian equities are expected to trade sideways with some volatility expected in the near term amid escalating geopolitical tensions in West Asia, Brent crude prices remaining above $85/bbl and weak global cues. With the Q1 earnings season gathering pace, stock-specific action is likely to dominate, while investors will closely monitor key global macro data.
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a positive start
GIFT Nifty on the NSE IX traded higher by 31 points, or 0.13 per cent, at 24,045.50, signaling that Dalal Street was headed for a positive start on Wednesday.
- Tech View: In the short term, the outlook is likely to remain positive as long as the index stays above 23,950. On the higher side, it may advance towards the 24,250–24,300 zone. However, a decisive fall below 23,950 could weaken the current bullish setup and trigger a phase of consolidation.
- India VIX: India VIX, which is a measure of the fear in the markets, rose 3.6% to settle at 13.75 levels.
Asian shares rise
Asian shares rose as cooler-than-expected US inflation data reduced expectations of Federal Reserve interest-rate hikes and the artificial intelligence trade gathered fresh momentum. Oil rose.
- S&P 500 futures were little changed as of 9:45 a.m. Tokyo time
- Hang Seng futures rose 0.2%
- Nikkei 225 futures (OSE) rose 0.7%
- Japan’s Topix rose 0.6%
- Australia’s S&P/ASX 200 rose 0.5%
- Euro Stoxx 50 futures fell 0.2%
US Stocks end higher
S&P 500 and the Nasdaq advanced on Tuesday as solid big bank results and a cooler-than-expected inflation report boosted risk appetite amid rising Middle East tensions.
Oil rises
Oil rose on Wednesday as President Donald Trump reimposed a naval blockade on all Iranian ports and Iran launched retaliatory strikes on U.S. infrastructure in the region.
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.
Rupee
The Indian rupee slumped to its weakest level in over a month on Tuesday, pressured by higher oil prices amid renewed hostilities in the Middle East, while likely central bank intervention contained losses.
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