The market is expected to open in the green as trends in the SGX Nifty indicate a gap-up opening for the broader index in India with a gain of 113 points.
The BSE Sensex jumped 548 points to 55,816, while the Nifty50 rose 158 points to 16,642 and formed a Bullish Engulfing candlestick pattern on the daily charts on Wednesday.
As per the pivot charts, the key support level for the Nifty is placed at 16,503, followed by 16,363. If the index moves up, the key resistance levels to watch out for are 16,717 and 16,793.
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:
Fed jacks rates again, Powell vows no surrender in inflation battle
The Federal Reserve said on Wednesday it would not flinch in its battle against the most intense breakout of inflation in the United States since the 1980s even if that means a "sustained period" of economic weakness and a slowing jobs market.
The 75-basis-point rate increase announced by the Fed on Wednesday, coupled with earlier actions in March, May and June, has now jacked the central bank's overnight interest rate from near zero to a level between 2.25% and 2.50%. That is the fastest tightening of monetary policy since former Fed Chair Paul Volcker battled double-digit inflation in the 1980s.
While Powell said he did not think a recession would be needed to fix the problem this time, he acknowledged that the economy was slowing and would likely need to slow more for the Fed to bring the pace of price increases back to earth.
US equities rose sharply and the dollar lost ground as investors bet the Federal Reserve would slow interest rate hikes following its announcement on Wednesday of an increase in rates in line with expectations.
The Dow Jones Industrial Average rose 436.05 points, or 1.37 percent, to 32,197.59, the S&P 500 gained 102.56 points, or 2.62 percent, to 4,023.61 and the Nasdaq Composite added 469.85 points, or 4.06 percent, to 12,032.42.
Shares in the Asia-Pacific region climbed on Thursday following the US Federal Reserve's decision to raise rates by 75 basis points to fight inflation, a move that was widely expected. Japan's Nikkei 225 rose 0.83 percent, while the Topix index added 0.37 percent. In Australia, the S&P/ASX 200 was 0.35 percent higher. The Kospi in South Korea advanced 0.88 percent. MSCI's broadest index of Asia-Pacific shares outside of Japan rose 0.48 percent.
Trends in SGX Nifty indicate a gap-up opening for the broader index in India with a gain of 113 points. The Nifty futures were trading around 16,775 levels on the Singaporean exchange.
Cabinet approves Rs 1.64 lakh crore revival package for BSNL
The Union Cabinet has approved a Rs 1.64-lakh crore revival package for the government-owned Bharat Sanchar Nigam Limited (BSNL), said Ashwini Vaishnaw, the minister for telecom, on July 27.
The package will have three main elements - it will aim at improving the quality of BSNL services, will be used to de-stress the balance sheet, and will expand the company's fiber reach by merging Bharat Broadband Network Limited (BBNL) with it.
Digital payments record 29% annual growth at March-end 2022: RBI data
Digital payments across the country registered a growth of nearly 29 percent in a year through March 2022, as per the RBI's latest index that measures the adoption of online transactions. The newly constituted RBI's digital payment index (RBI-DPI) stood at 349.3 in March 2022 against 304.06 in September 2021 and 270.59 percent in March 2021.
"The RBI-DPI index has demonstrated significant growth, representing the rapid adoption and deepening of digital payments across the country in recent years," the RBI said in a statement on Wednesday.
RBI to go for 35 bps hike in rates at next week's monetary policy meeting: Report
The Reserve Bank of India’s rate-setting panel will go for a 0.35 per cent hike in the key repo rate at its meeting next week, an American brokerage said on Wednesday.
The hike will be accompanied by a change in the policy stance to "calibrated tightening”, Bofa Securities said in a report published ahead of the Monetary Policy Committee (MPC) resolution which is set to be announced on August 5.
RBI has hiked the rate by a cumulative 0.90 per cent in two tightening moves in May and June, responding to the runaway headline inflation which has consistently overshot the upper end of the target set for the central bank for many months.
Results on July 28
Dr Reddy's Laboratories, Nestle India, SBI Life Insurance Company, Shree Cement, Jubilant FoodWorks, Vedanta, Bajaj Finserv, Punjab National Bank, Mahindra & Mahindra Financial Services, PNB Housing Finance, SBI Cards and Payment Services, TVS Motor Company, Shriram Transport Finance, Chalet Hotels, Equitas Small Finance Bank, CMS Info Systems, GHCL, AAVAS Financiers, Intellect Design Arena, Dr Lal PathLabs, Motilal Oswal Financial Services, Nippon Life India Asset Management, NIIT, NOCIL, RITES, Sona BLW Precision Forgings, TTK Prestige, and Westlife Development will be in focus ahead of June quarter earnings on July 28.
FII and DII data
Foreign institutional investors (FIIs) have net sold shares worth Rs 436.81 crore, whereas domestic institutional investors (DIIs) net bought shares worth Rs 712.03 crore on July 27, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Two stocks - Delta Corp, and Indiabulls Housing Finance - are under the NSE F&O ban list for July 28. 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 and other agencies