The Indian stock market is expected to open on a cautious note as trends on SGX Nifty indicate a flat opening for the broader index in India with a gain of 26 points.
The BSE Sensex tanked more than 700 points or 1.35 percent to 51,823 yesterday, while the Nifty50 plunged 225.50 points or 1.44 percent to 15,413 and formed a bearish candle on daily charts.
As per pivot charts, the key support level for Nifty is placed at 15,344, followed by 15,275. If the index moves up, the key resistance levels to watch out for are 15,524 and 15,634.
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:
Major US stock indexes ended down slightly Wednesday, losing early gains tied to remarks by Federal Reserve Chair Jerome Powell that the US central bank is "strongly committed" to bringing down inflation, while sharply lower oil prices weighed on energy shares.
The Dow Jones Industrial Average fell 47.12 points, or 0.15%, to 30,483.13, the S&P 500 lost 4.9 points, or 0.13%, to 3,759.89 and the Nasdaq Composite dropped 16.22 points, or 0.15%, to 11,053.08.
Shares in the Asia-Pacific were higher on Thursday as investors continued to monitor recession concerns. The Nikkei 225 in Japan rose 0.69%, and the Topix gained 0.58%. South Korea’s Kospi was advanced 0.64%, and the Kosdaq added 0.42%%.
In Australia, the S&P/ASX 200 was 0.48% higher. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.41%.
Trends on SGX Nifty indicate a flat opening for the broader index in India with a gain of 26 points. The Nifty futures were trading around 15,423 levels on the Singaporean exchange.
Oil extends losses as recession fears mount
Oil prices fell 2% in early trade on Thursday, extending losses from the previous day, as investors worried that aggressive U.S. interest rate hikes could trigger a recession and dent fuel demand. US West Texas Intermediate (WTI) crude futures fell $2.39, or 2.3%, to $103.80 a barrel by 0031 GMT. Brent crude futures dropped $2.24, or 2.0%, to $109.50 a barrel.
India's January-March current account deficit falls to $13.4 billion; FY22 CAD at three-year high
India's current account deficit (CAD) fell to $13.4 billion in January-March 2022 from $22.2 billion in October-December 2021, according to data released by the Reserve Bank of India (RBI) on June 22. The deficit was $8.1 billion in January-March 2021. In percentage terms, the CAD in January-March 2022 was 1.5 percent of GDP, down from 2.6 percent of GDP the previous quarter.
"The sequential decline in CAD in Q4:2021-22 (January-March) was mainly on account of a moderation in trade deficit and lower net outgo of primary income," the central bank said. India's merchandise trade deficit fell to $54.5 billion in the first quarter of 2022 from $59.8 billion the previous quarter, helping bring down the CAD.
Committed to inflation fight, not trying to trigger recession: Fed's Jerome Powell
The Federal Reserve is not trying to engineer a recession to stop inflation but is fully committed to bringing prices under control even if doing so risks an economic downturn, U.S. central bank chief Jerome Powell said on Wednesday.
"We are not trying to provoke, and I don't think we will need to provoke, a recession," Powell said at a hearing before the U.S. Senate Banking Committee, although he acknowledged that a recession was "certainly a possibility" and events in the last few months around the world had made it more difficult to reduce inflation without causing one.
"It is essential that we bring inflation down if we are to have a sustained period of strong labor market conditions that benefit all," Powell said. The Fed in coming months will be looking for "compelling evidence" of slowing price pressures before it eases up on the interest rate increases it kicked off three months ago.
Domestic air traffic jumps 11% sequentially in May to 1.2 crore: DGCA
Domestic air passenger traffic jumped to 1.2 crore in May 2022, marking a surge of 11 percent as compared to the preceding month, as per the data shared by the Directorate General of Civil Aviation (DGCA) on June 22. The numbers indicate that the air traffic has inched closer to the pre-pandemic level, as the domestic airlines had cumulatively ferried a total of 1.22 crore passengers in May 2019.
In the past month, IndiGo's passenger load factor increased to 81 percent, as against 78.7 percent in April 2022. SpiceJet's passenger load factor climbed to 89.1 percent in May 2022 from 85.9 percent in the preceding month.
Rising rates pressuring countries' credit ratings, S&P Global warns
A growing group of countries are likely to see their credit ratings come under pressure as rising global interest rates hit already-stretched finances, one of the world's biggest rating agencies, S&P Global, has warned.
A report by the firm on Wednesday said that heavily indebted Italy would face its highest debt bill as a percentage of its GDP since 2012 without European Central Bank help, while Ukraine, Brazil, Egypt, Ghana and Hungary were the most vulnerable emerging market countries.
FII and DII data
Foreign institutional investors (FIIs) have net sold Rs 2,920.61 crore worth of shares, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 1,859.07 crore worth of shares on June 22, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Three stocks - Indiabulls Housing Finance, RBL Bank, and Sun TV Network - are under the NSE F&O ban for June 23. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.With inputs from Reuters & other agencies