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 29 points.
The BSE Sensex tanked 861 points to 57,973, while the Nifty50 fell 246 points to 17,313 but formed a bullish candle on the daily charts as the closing was higher than opening levels.
As per the pivot charts, the key support level for the Nifty is placed at 17,193, followed by 17,072. If the index moves up, the key resistance levels to watch out for are 17,407 and 17,500.
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 stocks closed lower on Monday, adding to last week's sharp losses on nagging concerns about the Federal Reserve's determination to aggressively hike interest rates to fight inflation even as the economy slows.
The Dow Jones Industrial Average fell 184.41 points, or 0.57 percent, to 32,098.99, the S&P 500 lost 27.05 points, or 0.67 percent, to 4,030.61 and the Nasdaq Composite dropped 124.04 points, or 1.02 percent, to 12,017.67.
Shares in the Asia-Pacific were higher on Tuesday after sharp falls to start the week following Fed Chair Jerome Powell’s hawkish speech in Jackson Hole.
Japan’s Nikkei 225 rose 0.78 percent and the Topix index gained 0.85 percent. The Kospi in South Korea added 0.85 percent and the Kosdaq increased 1.09 percent. In Australia, the S&P/ASX 200 was fractionally higher. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.22 percent.
Trends in SGX Nifty indicate a positive opening for the broader index in India with a gain of 29 points. The Nifty futures were trading around 17,410 levels on the Singaporean exchange.
BofA revises Nifty target upward at 18,500-19,500 by December
Wall Street brokerage Bank of America Securities has sharply revised upward its Nifty forecast in the range of 18,500-19,500 points by December, after two successive downward revisions in June and earlier this month.
The brokerage cited the recent buying spree by foreign portfolio investors, pumping in more than Rs 44,000 crore in this month, along with continuing domestic flows, strong fiscal fundamentals and buoyant tax collections as key positives for the upper range, while the negatives include faster-than-expected revival in China, weakening in global macro/geopolitics in the reminder of the year.
Oil prices slip as inflation woes outweigh possible OPEC+ output cuts
Oil prices fell on Tuesday after notching their highest gains in more than a month in the previous session, as global inflation worries overshadowed the prospect of possible OPEC+ output cuts.
Brent crude futures fell 39 cents, or 0.3 percent, to $104.70 a barrel by 0012 GMT after climbing 4.1 percent on Monday. US West Texas Intermediate crude was at $96.79 a barrel, down 21 cents, or 0.2 percent, following a 4.2 percent rise in the previous session.
Dollar eases off of 20-year high as euro boosted by rates view
The dollar touched a fresh 20-year high on Monday, lifted by hawkish comments by Federal Reserve Chair Jerome Powell, but was kept in check as the euro was boosted by growing expectations for European Central Bank (ECB) rate hikes. The dollar index , which measures the currency's value against a basket of peers, hit 109.48 early in the session, a level not seen since September 2002.
The greenback extended gains from Friday, when Powell told the Jackson Hole central banking conference in Wyoming the Fed would raise rates as high as needed to restrict growth, and keep them there "for some time" to lower inflation running at more than three times the Fed's 2 percent goal.
Japan's jobless rate flat at 2.6% in July: Government
Japan's jobless rate was steady at 2.6 percent in July, while the availability of jobs grew for the seventh straight month to a more than two-year high, government data showed on Tuesday. The seasonally adjusted unemployment rate compared with a median forecast of 2.6 percent in a Reuters poll of economists. The jobs-to-applicants ratio was 1.29, labour ministry data showed, above June's 1.27 and marking its highest since April 2020.
UK services sector downbeat in face of record costs: CBI
Britain's services businesses reported a record increase in costs over the past three months and are downbeat about the future, as inflationary headwinds look set to squeeze demand further, the Confederation of British Industry (CBI) said on Tuesday.
The CBI's overall business optimism balance - which measures the difference between the percentage of firms who are upbeat and downbeat - sank to its weakest since May 2020, the height of the COVID-19 pandemic, for both consumer and business services.
FII and DII data
Foreign institutional investors (FIIs) have net sold shares worth Rs 561.22 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 144.08 crore on August 29, as per provisional data available on the NSE.
South Korea central bank chief: no change in stance after Powell speech
The head of South Korea's central bank said on Tuesday his bank's monetary policy stance would not change after a speech last week by Federal Reserve Chair Jerome Powell who said the US economy will need tight monetary policy "for some time".
Still, Bank of Korea Governor Rhee Chang-yong said his bank would keep closely watching the Fed's policy decisions as the volatility in global markets has increased, the central bank said.With inputs from Reuters and other agencies