The market is expected to open in the green on January 27 as trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 74 points.
In the previous session on Wednesday, the BSE Sensex tanked 774 points to 60,205, while the Nifty50 plunged 226 points - the biggest loss in a day since December 23 (2022) - to 17,892 and formed long bearish candle on the daily charts with lower high lower low formation, indicating negative mood among market participants. The market was closed on January 26 on account of Republic Day.
As per the pivot charts, we have the key support level for the Nifty at 17,849, followed by 17,789, and 17,789. If the index moves up, the key resistance levels to watch out for are 18,043, followed by 18,103 and 18,201.
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:
US Markets
Wall Street ended a choppy session higher on Thursday as investors grappled with an onslaught of economic data and a string of mixed corporate earnings, all while eyeing the clock as it ticks down toward next week's Federal Reserve monetary policy meeting.
The Dow Jones Industrial Average rose 205.57 points, or 0.61%, to 33,949.41, the S&P 500 gained 44.21 points, or 1.10%, to 4,060.43 and the Nasdaq Composite added 199.06 points, or 1.76%, to 11,512.41.
Asian Markets
Stocks in the Asia-Pacific traded higher on Friday as Wall Street’s major indexes gained after the US economy grew more than expected. Government data showed the economy expanded at an annualized rate of 2.9% during the fourth quarter, higher than expectations.
Nikkei 225 rose 0.11% in its first hour of trade and the Topix gained 0.18%. In Australia, the S&P/ASX 200 traded 0.23% higher. In South Korea, the Kospi was flat.
SGX Nifty
Trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 74 points. The Nifty futures were trading around 18,028 levels on the Singaporean exchange.
US economy posts strong growth in Q4, but with underlying weakness
The US economy grew faster than expected in the fourth quarter, but that likely exaggerates the nation's health as a measure of domestic demand rose at its slowest pace in 2-1/2 years, reflecting the impact of higher borrowing costs.
The Commerce Department's advance fourth-quarter gross domestic product report on Thursday showed half of the boost to growth came from a sharp rise in inventory held by businesses, some of which is likely unwanted.
Gross domestic product increased at a 2.9% annualized rate last quarter. The economy grew at a 3.2% pace in the third quarter. Economists polled by Reuters had forecast GDP would rise at a 2.6% rate.
Oil up 1% as positive US data, China reopening boosts demand optimism
Oil prices rose more than 1% on Thursday on expectations that global demand will strengthen as top oil importer China reopens its economy and on positive US economic data.
Brent futures rose $1.18, or 1.4%, to $87.30 a barrel by 11:42 a.m. EST (1642 GMT), while US West Texas Intermediate (WTI) crude rose $1.12, or 1.4%, to $81.27.
UN cuts India's 2023 growth forecast by 20 bps to 5.8% on rate hike, global slowdown fears
The United Nations (UN) has cut its GDP growth forecast for India for calendar year 2023 to 5.8 percent, citing the effect of tighter monetary policy and weak global demand.
"Growth in India is expected to remain strong at 5.8 percent, albeit slightly lower than the estimated 6.4 percent in 2022, as higher interest rates and a global slowdown weigh on investment and exports," the UN's World Economic Situation and Prospects 2023 report, published on January 25, said.
FII and DII data
Foreign institutional investors (FII) have net sold shares worth Rs 2,393.94 crore, whereas domestic institutional investors (DII) have net bought shares worth Rs 1,378.49 crore on January 25, as per provisional data available on the NSE.
Tata Motors back in black with Q3 net profit at Rs 2,958 crore; beats estimates
Tata Motors on January 25 reported a consolidated net profit of Rs 2,957.71 crore for the quarter ended December 2022, against a loss of Rs 1,516.14 crore in the same quarter last year.
Revenue from operations came in at Rs 88,488.59 crore, up 22.51 percent from Rs 72,229.29 crore in the same quarter last year, Tata Motors said in an exchange filing.
The Street was expecting the auto major to swing back to black with net profit estimates anywhere between Rs 300-800 crore. Consolidated sales were expected to rise over 14.5 percent year on year (YoY) and 3.9 percent sequentially to Rs 82,718 crore, estimates of analysts across four brokerages showed.
Results on January 27 and January 28
Bajaj Finance, Vedanta, Aarti Drugs, Aditya Birla Sun Life AMC, CMS Info Systems, Glenmark Life Sciences, Godfrey Phillips India, Sterlite Technologies, Zenotech Laboratories, and AIA Engineering will be in focus ahead of quarterly earnings on January 27.
NTPC, Bharat Electronics, CARE Ratings, DCB Bank, Five-Star Business Finance, Gujarat Ambuja Exports, Heranba Industries, Kajaria Ceramics, Vedant Fashions, Radiant Cash Management Services, and Zen Technologies will be in focus ahead of quarterly earnings on January 28.
Dollar higher as strong US data backs a hawkish Fed
The dollar edged higher against the euro on Thursday after data showed the US economy maintained a strong pace of growth in the fourth quarter, backing the case for the US Federal Reserve to maintain its hawkish stance for longer.
The euro was 0.23% lower at $1.08895, but not far from the nine-month high of $1.09295 touched on Monday. Against the yen, the dollar was up 0.54% at 130.275 yen.
With inputs from Reuters and other agencies
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