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 19 points.
The BSE Sensex climbed 446 points to 58,075, while the Nifty50 jumped 119 points to 17,108, making a higher-high-higher-low formation on the daily charts.
As per the pivot charts, the Nifty has support at 17,041, followed by 17,015 and 16,972. If the index moves up, the key resistance levels to watch out for are 17,126, followed by 17,153 and 17,195.
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 closed sharply higher on Tuesday as widespread fears over liquidity in the banking sector abated and market participants eyed the Federal Reserve, which is expected to conclude its two-day policy meeting on Wednesday with a 25 basis-point hike to its policy rate.
All three major US stock indices were bright green as the session closed, with energy, consumer, discretionary, and financials enjoying the most sizable gains.
The Dow Jones Industrial Average rose 316.02 points, or 0.98 percent, to 32,560.6, the S&P 500 gained 51.3 points, or 1.30 percent, to 4,002.87 and the Nasdaq Composite added 184.57 points, or 1.58 percent, to 11,860.11.
Asian Markets
Asia-Pacific markets rose on Wednesday as investors looked ahead to the US Federal Reserve’s latest update on its rate hike decision, as the central bank attempts to balance its inflation fight and stem a banking crisis.
Japanese markets led gains in the region, with the Nikkei 225 up 1.54 percent and the Topix higher at 1.77 percent after breaching the 2 percent level earlier. In Australia, the S&P/ASX 200 rose 0.9 percent, while in South Korea, the Kospi rose 0.67 percent.
SGX Nifty
Trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 19 points. The Nifty futures were trading around 17,163 levels on the Singaporean exchange.
Oil rises 2% in retreat from 15-mth low as banking fears subside
Oil prices rose more than 2 percent on Tuesday, extending a retreat from a 15-month low hit the previous day, as the rescue of Credit Suisse allayed concerns of a banking crisis that would hurt economic growth and cut fuel demand.
Brent crude settled up $1.53, or 2.1 percent, at $75.32 a barrel, while US West Texas Intermediate (WTI) closed up $1.69, or 2.5 percent to $69.33.
Inflation expected to range between 5% and 5.6% in FY2024: RBI
The retail inflation is expected to range tightly between 5 percent and 5.6 percent if the country manages to successfully deal with the El Nino event, the Reserve Bank of India (RBI) bulletin said on March 21.
“Over the financial year ahead (2023-24), inflation is expected to range tightly between 5.0 and 5.6 percent if India survives an El Nino event adversely affecting the southwest monsoon, given global uncertainties,” the bulletin said.
Yellen vows to safeguard US bank deposits, may need more interventions
The US banking system is stabilizing after strong actions from regulators, but further steps to protect bank depositors may be needed if smaller institutions suffer deposit runs that threaten more contagion, US Treasury Secretary Janet Yellen told bankers on Tuesday.
In prepared remarks to an American Bankers Association conference, Yellen said government steps taken in recent days to protect uninsured deposits in two failed banks and create new Federal Reserve liquidity facilities have shown a "resolute commitment to take the necessary steps to ensure that depositors’ savings and the banking system remain safe."
FII and DII data
Foreign institutional investors (FII) sold shares worth Rs 1,454.63 crore, whereas domestic institutional investors (DII) bought shares worth Rs 1,946.06 crore on March 21, the National Stock Exchange’s provisional data showed.
Gold dips 2% as banking fears recede in run-up to Fed decision
Gold dropped about 2% on Tuesday as Treasury yields jumped and easing worries over a banking crisis prompted some investors to cautiously return to riskier assets, while markets await the US Federal Reserve's next interest rate decision.
Spot gold dipped 2.1% to $1,938.19 per ounce by 1731 GMT. US gold futures , too, fell 2.1% to settle at $1,941.10.
Dollar holds its breath as market awaits Fed policy decision
The dollar pared earlier losses and sterling fell on Tuesday as traders reckoned banking stress could keep the Federal Reserve and the Bank of England from hiking interest rates much further, or at all, later in the week.
Investors' focus has moved to a slew of central bank meetings due this week after days of volatility in markets caused by worries over the stability of the global banking sector. The dollar index fell 0.058% to 103.270, while sterling edged 0.59% lower to $1.2204.
Stocks under F&O ban on NSE
The National Stock Exchange has retained Biocon, and Indiabulls Housing Finance to its F&O ban list for March 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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