The market is expected to open in the red as trends in the SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 215 points.
The BSE Sensex rose 59 points to 58,834, while the Nifty was up 36 points at 17,559 and formed a bearish candle on the daily charts, as the closing was lower than opening levels.
As per the pivot charts, the key support for the Nifty is at 17,490, followed by 17,421. If the index moves up, the key resistance levels to watch out for are 17,657 and 17,754.
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:
Stocks pummelled Friday after Federal Reserve Chair Jerome Powell said in his Jackson Hole speech the central bank won’t back off in its fight against rapid inflation.
The Dow Jones Industrial Average dropped 1,008.38 points, or 3.03 percent, to 32,283.40, with losses accelerating into the close. The S&P 500 fell 3.37 percent to 4,057.66, and the Nasdaq Composite slid 3.94 percent to 12,141.71.
Asian shares slid on Monday as the mounting risk of more aggressive rate hikes in the United States and Europe shoved bond yields higher and tested equity and earnings valuations.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7 percent. Japan's Nikkei dropped 2.3 percent, while South Korea shed 2.3 percent.
Trends in SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 215 points. The Nifty futures were trading around 17,444 levels on the Singaporean exchange.
Powell sees pain ahead as Fed sticks to the fast lane to beat inflation
Americans are headed for a painful period of slow economic growth and possibly rising joblessness as the Federal Reserve raises interest rates to fight high inflation, US central bank chief Jerome Powell warned on Friday in his bluntest language yet about what is in store for the world's biggest economy.
In a speech kicking off the Jackson Hole central banking conference in Wyoming, Powell said the Fed will raise rates as high as needed to restrict growth, and would keep them there "for some time" to bring down inflation that is running at more than three times the Fed's 2 percent goal.
"Reducing inflation is likely to require a sustained period of below-trend growth," Powell said. "While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain."
Portfolio managers can invest up to 30% of clients' assets in securities of 'associates': Sebi
Markets regulator Sebi on Friday said portfolio managers can invest a maximum of 30 percent of clients' assets in the securities of their "associates" or related parties.
This came after Sebi amended portfolio managers' rules on Monday that mandated prudential limits on investments in associates and related parties of portfolio managers, the requirement of taking prior consent of clients for such investments and restrictions based on the credit rating of securities.
The regulator defined "associate" as a body corporate in which a director or partner of the portfolio manager holds, either individually or collectively, more than 20 per cent of its paid-up equity share capital or partnership interest. In a circular, the Securities and Exchange Board of India (Sebi) said "portfolio managers shall invest up to a maximum of 30 per cent of their client's portfolio (as a percentage of the client's assets under management) in the securities of their own associates/related parties.
China July industrial profits down as Covid curbs, heatwaves hit
Profits at China's industrial firms sank in July, reversing previous gains as fresh Covid-19 curbs dragged down demand and squeezed factory margins, while power shortages due to heatwaves threatened production.
Profits at China's industrial firms fell 1.1 percent in January-July from a year earlier, wiping out the 1 percent growth logged during the first six months, the National Bureau of Statistics said on Saturday.
Foreign exchange reserves decline to $564.053 billion
The country's foreign exchange reserves fell $6.687 billion to $564.053 billion in the week ended August 19, according to the Reserve Bank of India (RBI) data. In the previous week ended August 12, the reserves declined $2.238 billion to $570.74 billion.
The drop in the reserves during the week ended August 19 was due to a fall in the Foreign Currency Assets (FCA) and the gold reserves, as per the Weekly Statistical Supplement released by RBI on Friday. FCA fell $5.779 billion to $501.216 billion in the reporting week.
Oil mixed as OPEC supply cut prospect offsets demand fears
Oil prices were mixed on Monday as investors balanced expectations the OPEC will cut output to support prices against concerns sparked by Federal Reserve Chairman Jerome Powell saying the United States will face slow growth "for some time".
US West Texas Intermediate (WTI) crude futures rose 2 cents to $93.08 a barrel at 0003 GMT, adding to Friday's gain. Brent crude futures were down 27 cents, or 0.3 percent, at $100.72 a barrel, trimming gains from the previous session.
Sebi suspends trading in cotton futures on MCX for a month
The Securities and Exchange Board of India (Sebi) has suspended trading in all cotton futures contracts on the Multi Commodity Exchange of India Ltd for a month to revisit and revise contract specifications, MCX has said.
The decision was taken during a meeting that the market regulator held on August 26 in Mumbai with the country’s largest commodity exchange and various stakeholders, including officials of the textile ministry, Cotton Corporation of India and various industry bodies.
In the meeting, several issues pertaining to the MCX cotton futures contract were discussed and it was decided to revisit and and modified the specification to for "wider value-chain participation", the commodity exchange said in a release.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 51.12 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 453.59 crore on August 26, as per the provisional data available on the NSE.With inputs from Reuters and other agencies