The market is expected to open in the red as trends in SGX Nifty indicate a negative opening for the broader index in India with a loss of 80 points.
The BSE Sensex jumped 578 points to 59,720, while the Nifty50 rose 194 points to 17,816 and formed decent bullish candle which resembles Shooting Star kind of pattern formation on the daily charts.
As per the pivot charts, the key support level for the Nifty is placed at 17,734, followed by 17,652. If the index moves up, the key resistance levels to watch out for are 17,909 and 18,001.
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:
Wall Street ended Tuesday lower as the eve of a US Federal Reserve meeting expected to bring another large interest rate hike brought further evidence of the impact on corporate America from the inflation that the US central bank wants to tame.
The Dow Jones Industrial Average fell 313.45 points, or 1.01 percent, to 30,706.23, the S&P 500 lost 43.96 points, or 1.13 percent, to 3,855.93 and the Nasdaq Composite dropped 109.97 points, or 0.95 percent, to 11,425.05.
Shares in the Asia-Pacific opened lower on Wednesday, following Wall Street’s negative lead ahead of the Federal Reserve’s expected rate hike.
The Nikkei 225 in Japan dropped 1 percent in early trade, while the Topix index fell 0.94 percent. In Australia, the S&P/ASX 200 slipped 0.32 percent. South Korea’s Kospi declined 0.35 percent. MCSI’s broadest index of Asia-Pacific shares outside Japan shed 0.17 percent.
Trends in SGX Nifty indicate a negative opening for the broader index in India with a loss of 80 points. The Nifty futures were trading around 17,714 levels on the Singaporean exchange.
Oil prices extend losses on fears aggressive Fed rate hike will curb demand
Oil prices slid on Wednesday, extending the previous day's losses, as investors braced for another aggressive interest rate hike from the US Federal Reserve that they fear could lead to recession and plunging fuel demand.
Brent crude futures dropped 26 cents, or 0.3 percent, to $90.36 a barrel by 0040 GMT after falling $1.38 the previous day. US West Texas Intermediate crude was at $83.74 a barrel, down 20 cents, or 0.2 percent.
Rate hikes, Ukraine war, China woes dim Asia growth outlook: ADB
The Asian Development Bank (ADB) on Wednesday cut its growth forecasts for developing Asia for 2022 and 2023 amid mounting risks from increased central bank monetary tightening, the fallout from the war in Ukraine and Covid-19 lockdowns in China.
The ADB now expects the area's combined economy, which includes China and India, to grow 4.3 percent this year, after previously trimming the forecast to 4.6 percent in July from 5.2 percent in April.
For 2023, the ADB expects the region's economy to expand 4.9 percent, slower than the April and July forecasts of 5.3 percent and 5.2 percent, respectively, it said in the September edition of its flagship Asian Development Outlook report.
US two-year yield at almost 15-year high before Fed meeting
The yield on two-year US Treasury notes, a rough gauge of interest rate expectations, rose to almost a 15-year high on Tuesday, a day before the Federal Reserve is likely to hike rates by 75 basis points as it continues to fight inflation.
The two-year is highly sensitive to shifts in monetary policy expectations and early on Tuesday it hit 3.992 percent. The last time its yield broke above 4 percent was October 18, 2007.
Ford stock has biggest daily drop since 2011 after inflation warning
Ford Motor Co's stock tumbled over 12 percent on Tuesday in its deepest one-day decline in over a decade after the automaker said inflation-related costs would be $1 billion more than expected in the current quarter and that parts shortages had delayed deliveries.
The stock ended at $13.09, making its percentage decline for the session its largest since January 2011. Ford's preliminary third-quarter results, released late on Monday, sent shares of rival General Motors Co down 5.6 percent as analysts said it might take more time for automakers to recover from chip shortages.
"It appears that across the industry, chip and components shortages may be improving at a slower pace than anticipated," Deutsche Bank analyst Emmanuel Rosner said.
Yes Bank approves sale of $6 billion stressed debt to JC Flowers
Yes Bank announced on September 20 that its board has approved the sale of $6 billion (Rs 480 billion, approximately) stressed debt to private equity firm JC Flowers after the bank received no challenger bids to JC Flowers' base bid for the Rs 48,000 crore NPA portfolio.
Yes Bank said in a stock exchange filing: “The Swiss Challenge process has now concluded and the Bank not having received any Challenger Bids to the Base Bid, the Board of Directors of the Bank, at their Meeting held on September 20, 2022, has approved the declaration of JC Flowers ARC as the winner of the Swiss Challenge process.”
FII and DII data
Foreign institutional investors (FIIs) have net bought shares worth Rs 1,196.19 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 131.94 crore on September 20, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Five stocks – Delta Corp, Escorts, India Cements, PVR, and RBL Bank – are under the NSE F&O ban list for September 21. Securities thus 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