The market is expected to open in the green as trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 33 points.
The BSE Sensex plunged 928 points, the biggest single-day fall since December 23, to 59,745, while the Nifty50 tanked 272 points, the largest single-day fall since January 27, to 17,554 and formed a long bearish candle on the daily charts, ahead of the monthly expiry of February derivative contracts.
As per the pivot charts, the Nifty has support at 17,526, followed by 17,469 and then 17,376. If the index moves up, the key resistance levels to watch out for are 17,712, followed by 17,769 and 17,862.
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
The S&P 500 extended its losing streak to four sessions as Wall Street ended broadly lower on Wednesday, with investors cautious despite the latest guidance on rate policy from the US central bank showing few surprises.
Minutes from the Federal Reserve's January 31-February 1 meeting said that "almost all" Fed officials agreed to slow the pace of increases in interest rates to a quarter of a percentage point.
The Dow Jones fell 84.5 points, or 0.26 percent, to 33,045.09, the S&P lost 6.29 points, or 0.16 percent, to 3,991.05 and the Nasdaq added 14.77 points, or 0.13 percent, to 11,507.07.
Asian Markets
Asia Pacific markets were mixed on Thursday after the U.S. Federal Reserve released the minutes of its most recent meeting that showed central bank members are still committed to fighting inflation with rate hikes.
The S&P/ASX 200 was 0.38 percent lower. The South Korean Kospi was 0.26 percent higher and the Kosdaq fell 0.53 percent, as the central bank held its interest rates at 3.5 percent, in line with economists expectations.
Japanese markets will be closed on Thursday for the Emperor’s birthday.
SGX Nifty
Trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 33 points. The Nifty futures were trading around 17,590 levels on the Singaporean exchange.
RBI MPC minutes: Members unwilling to let guard down on high inflation, yet watchful on growth
Many members of the Monetary Policy Committee (MPC) highlighted the continuing concerns about high inflation while some cautioned about the impact of too much rate tightening on growth, according to the minutes of the meeting released on February 22.
"Although it seems to have peaked, inflation remains high and, in my view, it is the biggest threat to the macroeconomic outlook. Restoration of price stability – as statutorily mandated – will provide a solid foundation for a growth trajectory that actualises India’s potential," said RBI deputy governor Michael D Patra in RBI February minutes.
"Excessive front-loading of rate hikes carries the risk of over-shooting that is best avoided for compelling reasons in the Indian context," said Ashima Goyal, RBI MPC Member.
Oil drops 3% as high inflation risks stoke demand worries
Oil prices fell by $2 per barrel to their lowest in two weeks on Wednesday, as investors became more concerned that recent data will prompt more aggressive interest rate increases by central banks, pressuring economic growth and fuel demand.
Brent crude futures settled $2.45, or 3 percent, lower at $80.60 per barrel. West Texas Intermediate crude futures (WTI) dropped $2.41, or 3 percent, to end at $74.05 a barrel.
FDI equity inflows decline 15% to USD 36.75 billion in April-December FY23
Foreign direct investment (FDI) into India declined by 15 percent to $36.75 billion during the April-December this fiscal, according to the latest Department for Promotion of Industry and Internal Trade data. The FDI inflows stood at $43.17 billion during the corresponding period of the previous year.
The total FDI inflows, which includes equity inflows, re-invested earnings and other capital, declined to $55.27 billion during the nine months of the current fiscal year as against $60.4 billion in the year-ago period.
FII and DII data
Foreign institutional investors (FII) sold shares worth Rs 579.82 crore, whereas domestic institutional investors (DII) bought shares worth Rs 371.56 crore on February 22, NSE’s provisional data showed.
Bank of Korea pauses after 1-year run of interest rate rises
South Korea's central bank kept interest rates unchanged on Thursday, matching market expectations and ending an uninterrupted one-year run of rises. The Bank of Korea's monetary policy board held its policy interest rate steady at 3.50 percent, in line with a unanimous expectation by the 42 economists in a Reuters poll.
The central bank also issued revised forecasts for this year's economic growth and inflation to 1.6 percent and 3.5 percent, respectively, both down from November's projections, which were 1.7 percent and 3.6 percent.
Dollar firms as investors brace for higher-for-longer rates scenario
The dollar stood near a seven-week high against the euro and the Aussie on Thursday, as expectations the Federal Reserve is likely to stay on its aggressive rate-hike path, reinforced by minutes from its last policy meeting, set the tone for markets.
The dollar paused its ascent on Thursday after gaining broadly on the back of the release. The euro edged marginally higher to $1.0608 on Thursday, but was pinned near a roughly seven-week trough of $1.0598 hit in the previous session. Against a basket of currencies, the US dollar index stood at 104.50, and was attempting to break a more than one-month peak of 104.67 hit last week.
Stocks under F&O ban on NSE
The National Stock Exchange has retained Vodafone India to its F&O ban list for February 23. 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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