The market is expected to open in the red as trends in the SGX Nifty indicate a negative opening for the broader index in India with a loss of 58 points.
The BSE Sensex fell 19 points to 60,673, while the Nifty50 declined 18 points to 17,827 on Tuesday, and formed bearish candlestick pattern on the daily charts, making lower-highs-lower-lows for the third straight session while taking support at the 17,800 level.
As per the pivot charts, the Nifty has support at 17,803, followed by 17,774 and then 17,726. If the index moves up, the key resistance levels to watch out for are 17,898, followed by 17,928 and 17,975.
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:
Wall Street posted its worst performance of the year so far on Tuesday, with the main benchmarks ending down as investors interpreted a rebound in US business activity in February to indicate that interest rates need to stay higher for longer to control inflation.
The Dow Jones Industrial Average fell 697.1 points, or 2.06 percent, to 33,129.59, the S&P 500 lost 81.75 points, or 2 percent, to 3,997.34 and the Nasdaq Composite dropped 294.97 points, or 2.5 percent, to 11,492.30.
Asian Markets
Asia-Pacific markets were lower on Wednesday ahead of key economic data across the region.
Japan’s Nikkei 225 fell 0.7 percent as investors further digested the nation’s producer price index that rose 1.6 percent on an annualized basis. The Topix fell 0.6 percent. In South Korea, the Kospi fell 1 percent. The S&P/ASX 200 fell 0.74 percent lower as Australia awaits the release of its wage price index in for the fourth quarter of 2022.
SGX Nifty
Trends in the SGX Nifty indicate a negative opening for the broader index in India with a loss of 58 points. The Nifty futures were trading around 17,787 levels on the Singaporean exchange.
India’s GDP growth likely to trip to 5.9% in FY24 on emerging fault lines: Ind-Ra
The Indian economy is likely to grow at 5.9 percent in FY24, much below the RBI estimate of 6.4 percent, hindered by emerging faultlines in stagnating exports, subdued manufacturing and sluggish consumption demand, India Ratings and Research said on Tuesday.
“Net exports are likely to taper off in FY24. Exports are likely to face headwinds and are stagnating on account of a slowdown in advanced countries. Though the services sector is expected to remain buoyant, the industrial recovery is very slow. There are still enough fault lines for us to believe a realistic GDP growth of 5.9 percent in FY24,” Devendra Pant, chief economist, India Ratings and Research, said.
The agency said that the pent-up demand which had provided thrust to the growth is normalising and credit growth is facing tighter financial conditions.
FII and DII data
Foreign institutional investors (FII) bought shares worth Rs 525.80 crore, whereas domestic institutional investors (DII) sold shares worth Rs 235.23 crore on February 21, NSE's provisional data showed.
NSE to allow trading in interest rate derivatives till 5 pm from today
The trading hours for interest rate derivatives have been extended till 5 pm by the National Stock Exchange (NSE), according to a circular. The change in timing will come into effect from February 23 onwards.
The trading window is now of six hours and 30 minutes, stretching from 9 am to 3:30 pm. The decision to extend the time till 5 pm is intended to converge the trading hours with the underlying market timings, the NSE said.
In line with the move, contracts slated for expiry in the current month will be available for trading till 5 pm on expiry day i.e. February 23, 2023, the circular said. "There shall be no change in trading hours for other interest rate derivative contracts," it clarified.
Oil falls more than 1% as growth fears offset China demand hopes
Brent crude oil slipped more than 1 percent in a volatile session on Tuesday as persistent concerns about global economic growth outweighed supply curbs and prompted investors to take profits on the previous day's gains.
The focus in the wider financial market is firmly on the release on Wednesday of the minutes of the US Federal Reserve's latest meeting, after recent data raised the risk of interest rates remaining higher for longer.
Global benchmark Brent crude settled $1.02, or 1.2 percent, lower at $83.05 a barrel. US West Texas Intermediate crude (WTI) for March, which expired on Tuesday, fell 18 cents, or 0.2 percent, to $76.16 a barrel.
US business activity rebounds to eight-month high in February- S&P Global survey
US business activity unexpectedly rebounded in February, reaching its highest level in eight months, according to a survey on Tuesday, which also showed inflation subsiding. S&P Global said its flash US Composite PMI Output Index, which tracks the manufacturing and services sectors, increased to 50.2 this month from a final reading of 46.8 in January.
That ended seven straight months of the index being below the 50 mark, which indicates contraction in the private sector. The services sector accounted for the rise in business activity, while manufacturing remained weak. Economists polled by Reuters had forecast the flash Composite PMI Output Index at 47.5.
US Treasury yields hit new highs
US Treasury yields hit new highs on Tuesday as investors weighed the prospects of a longer-than-anticipated stiff monetary policy stance by the Federal Reserve following continued strong economic data.
Market sentiment has remained bearish after Fed officials signaled last week that the US central bank was likely to keep raising interest rates for longer than was previously forecast in its bid to tame inflation.
Benchmark 10-year note yields jumped to the highest since November 10 and were at 3.9584 percent. The yield curve between two-year and 10-year notes remained deeply inverted at minus 78 basis points, indicating heightened concerns over an impending recession.
Stocks under F&O ban on NSE
The National Stock Exchange has added Vodafone India to its F&O ban list for February 22. Securities banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
With inputs from Reuters and other agencies
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