The market is likely to open marginally lower on Thursday as the SGX Nifty indicates a negative start for the broader index, with a loss of 60 points after opening the session at 18,252. SGX futures touched a high of 18,395 in early trade on May 25.
The BSE Sensex lost 208 points to close at 61,773 on Wednesday, while the Nifty 50 closed 63 points lower at 18,285. The Nifty50 traded comfortably higher than its 200-day moving average of 18,033 and is expected to build on the recent momentum.
Pivot charts indicate that the Nifty may get support at 18,264, followed by 18,233 and 18,184. If the index advances, 18,363 would be the key resistance level to watch out for followed by 18,394 and 18,443.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms, which could impact Indian as well as international markets.
SGX Nifty
The SGX Nifty indicates a negative start for the broader index with a loss of 60 points on Thurday. SGX futures stood at 18,230.
Trade setup for Thursday: Top 15 things to know before the opening bell
US Markets
Dow futures slipped Wednesday night after Fitch Ratings placed the United States’ AAA rating on a negative rating watch. Meanwhile, Nasdaq 100 futures rallied after strong earnings beat from Nvidia. Dow Jones Industrial Average futures fell 60 points, or 0.18 percent. Meanwhile, Nasdaq 100 futures jumped 1.4 percent, and S&P 500 futures gained 0.45 percent.
Fitch Ratings put the U.S.′ AAA long-term foreign-currency issuer default rating on a negative watch. The rating agency said the ongoing debt ceiling negotiations have raised the risks that the government could miss payments on some of its obligations. However, Fitch said it still expects a resolution before the X-date.
European Markets
European markets closed lower Wednesday, with market sentiment rattled by stumbling U.S. debt ceiling talks. The Stoxx 600 index closed 1.8 percent lower, with nearly all sectors down more than 1 percent and autos, banks, insurance and travel stocks all shedding more than 2 percent.
FTSE closed 1.75 percent lower at 7627 points. DAX closed 1.92 percent lower at 15842 points. CAC 40 Index closed 1.7 percent lower at 7253 points.
Asian Markets
Asia-Pacific markets are mixed as the Bank of Korea held its benchmark interest rate steady at 3.5 percent, in line with expectations. South Korea, which was one of the first Asian banks to pause its rate hikes, has held rates for three straight meetings since January. South Korea’s Kospi was up marginally and the Kosdaq gained 0.27 percent.
In Japan, the Nikkei 225 rose 0.22 percent, but the Topix saw a loss of 0.3 percent. Australia’s S&P/ASX 200 also saw a weak open at 0.71 percent lower. Most notably, Hong Kong’s Hang Seng index looks set to breach its two-month low, with futures standing at 18,878 compared to its last close of 19,115.93. Indonesia will also announce its benchmark interest policy rates on Thursday, with economists polled by Reuters expecting the country’s central bank to hold its 7-day reverse repurchase rate at 5.75 percent.
LIC Q4 profit surges nearly 6-fold to Rs 13,428 crore
Life Insurance Corporation of India recorded a standalone net profit of Rs 13,427.8 crore for the quarter ended March FY23, growing 466 percent over the corresponding period in the last fiscal. The standalone net profit for the March FY22 quarter stood at Rs 2,371.5 crore, according to an exchange filing from the country's largest insurer on May 24. The sequential growth in profit was 112 percent.
BSE, NSE put Adani Enterprises under short-term ASM framework
Leading bourses BSE and NSE will put the securities of Adani Enterprises under the short-term ASM framework from today. The parameters for shortlisting securities under ASM include high-low variation, client concentration, number of price band hits, close-to-close price variation and price-earnings ratio.
Adani Enterprises Ltd is shortlisted in short-term Additional Surveillance Measure (ASM) framework Stage-I effective from May 25, the National Stock Exchange (NSE) and the BSE said in two separate circulars on Wednesday.
Oil prices
Oil prices rose about 2 percent on Wednesday, after a large, unexpected drawdown in U.S. crude inventories and a warning from the Saudi energy minister that raised the prospect of further OPEC+ production cuts.
Brent crude futures rose $1.63, or 2.1 percent, to $78.47 a barrel, while U.S. West Texas Intermediate crude (WTI) gained $1.68, or 2.2 percent, to $74.56 a barrel.
Dollar
The Dollar index traded 0.41 percent higher in futures at 103.91, whereas the value of one dollar hovered near Rs 82.68
Gold
Gold eased on Wednesday as the dollar firmed, cutting some safe- haven flows into bullion from the looming risk of a U.S. debt default as talks entered a critical stretch, while investors awaited minutes of the Federal Reserve’s recent policy meeting. Spot gold was down 0.6 percent at $1,961.59 per ounce by 12:03 p.m. ET after rising as much as 0.5 percent earlier. U.S. gold futures fell 0.5 percent to $1,964.50.
FII and DII
Foreign institutional investors (FIIs) bought shares worth Rs 1,185.84 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 300.93 crore on May 24, provisional data from the National Stock Exchange showed.
With inputs from Reuters and other agencies.
