What changed for market while you were sleeping: 6 things you should know
The Nifty50 hit a record high while Sensex touched fresh 52-week high in the previous trading session following BJP’s win in the key state election. Will the momentum continue amid fears of a rate hike by the US Fed probably later today, stay tuned with Moneycontrol.com to find out!
Here’s are top cues from domestic as well as international markets which could have a bearing on D-Street:
US markets ended on a flat note in overnight trade as oil prices dropped to their lowest level since November pulled down by industrial as well as healthcare stocks. Trading was light ahead of US Federal Reserve 2-day policy outcome due later today.
The Dow Jones Industrial Average fell 44.11 points, or 0.21 percent, to 20,837.37, the S&P 500 lost 8.02 points, or 0.34 percent, to 2,365.45 and the Nasdaq Composite dropped 18.97 points, or 0.32 percent, to 5,856.82.
The Nifty50 futures on the Singapore Stock Exchange were trading 17 points higher at 9,118 indicating a flat-to-positive opening for the domestic market.
US Fed Meet:
All eyes will be on the outcome of US Federal Reserve 2-day policy meet which kicked off yesterday. Most analysts suggest that US Fed may announce an interest-rate increase but commentary and outlook on further rate hikes is something which could lead to a bit of volatility in markets across the globe including India.
“Markets will now be eyeing the US Fed stance on key rates. The majority feels that they'll go ahead with rate hike but with no clear signal on quantum,” Jayant Manglik, President, Retail Distribution, Religare Securities Ltd told Moneycontrol.com.
“We suggest keeping bullish tone but with a word of caution, considering the possible volatility ahead. Stock selection becomes difficult around the record high and it's no different this time,” he said.
Oil dips further:
U.S. crude prices settled down 1.4 per cent at $47.72 a barrel, touching their lowest point since November 30. Benchmark Brent crude settled down 0.8 per cent at $50.92 a barrel.
Oil prices dipped on reports of rising crude stocks after OPEC reported a rise in global crude stocks and a surprise output jump from its biggest member, Saudi Arabia.
The rupee surged by a massive 78 paise to end at a nearly one-and-a-half year high of 65.82 against the US dollar on Tuesday. RBI was seen intervening through state-owned banks that bought dollars, a move aimed at checking the rupee's wild swings, dealers said.
The rupee hit a fresh intra-day high of 65.76 on Tuesday before ending at 65.82, showing a solid gain of 78 paise, or 1.17 per cent. This is the highest closing of the rupee since November 6, 2015, when it had ended at 65.76.
Foreign investors have invested more than Rs 10,000 crore in the Indian capital markets this month so far and a win by BJP in major state election would mean smooth transition of the reform process.
CPI Inflation Data:
India's headline inflation rate based on the Consumer Price Index (combined) went up to was 3.65 per cent in February compared with 3.17 per cent in January and 5.26 per cent a year ago, data released by statistics office showed on Tuesday.Higher inflation data rules out any possibility of a cut in interest rate by the Reserve Bank of India in its upcoming meeting in April.