Nifty closed marginally higher on Wednesday, while broader markets remained subdued. Analysts say markets are likely to remain cautious in the near term, amid an unfavourable macro backdrop marked by continued weakness in the rupee, elevated Brent crude prices near $111/bbl, and high US bond yields, all of which are tightening financial conditions and weighing on sentiment.
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a positive start
GIFT Nifty on the NSE IX traded higher by 166.5 points, or 0.70 per cent, at 23,811.50, signaling that Dalal Street was headed for a positive start on Thursday.
- Tech View: Overall, sentiment remains weak, and this weakness may continue in the short term as long as the index stays below 23,800. On the other hand, a decisive move above 23,800 could trigger a strong rally. At the lower end, a fall below 23,400 may induce panic in the market.
- India VIX: India VIX, which is a measure of the fear in the markets, fell 1.26% to settle at 18.44 levels.
US Stocks end higher
Wall Street's main indexes closed more than 1% higher on Wednesday, bouncing back from a three-day selloff with a boost in sentiment from technology and chip stocks, which rose ahead of Nvidia's quarterly results.
Asian shares gain
Asian equities followed Wall Street higher as optimism over US-Iran talks eased concerns about Middle East tensions, sending crude oil and bond yields lower. Nvidia Corp. shares slipped in a lukewarm response to its sales forecast.
- S&P 500 futures fell 0.4% as of 9:03 a.m. Tokyo time
- Hang Seng futures rose 0.7%
- Japan’s Topix rose 1.2%
- Australia’s S&P/ASX 200 rose 1.3%
- Euro Stoxx 50 futures rose 2%
Oil rebounds
Oil prices rebounded on Thursday after two days of losses on outstanding supply concerns because of the uncertain outlook for an end to the Iran war and a U.S. inventory draw raised worries about the depletion of global stockpiles.
Dollar rally pauses
The U.S. dollar hovered below a six-week peak on Thursday after pulling back on rising hopes that Washington is nearing a deal with Tehran to end the war in the Middle East.
Gold Steady
Gold held steady on Thursday, as fears of oil-driven inflation and higher global interest rates were offset by optimism around a potential U.S.-Iran peace deal.
Stocks in F&O ban today
SAIL
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 sold shares worth Rs 1,597 crore on Wednesday. DIIs, meanwhile, were net sellers at Rs 1,968 crore.
Rupee
Declining for the ninth consecutive session, the rupee depreciated 16 paise to close at a fresh lifetime low of 96.86 against the US dollar on Wednesday as elevated global crude prices amid the West Asia crisis stoked inflation worries.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
