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Stock Market Today: Top 10 things to know before the market opens today

Stock Market News: Trends in SGX Nifty indicate a negative opening for the equity benchmarks in India with a loss of 39 points.

October 07, 2022 / 07:56 AM IST
Stock Market News

Stock Market News

The market is expected to open in the red on October 7 as trends in SGX Nifty indicate a negative opening for the equity benchmarks in India with a loss of 39 points.

On Thursday, the BSE Sensex climbed 157 points to 58,222, while the Nifty50 rose 58 points to 17,332 and formed a bearish candle on the daily charts as the closing was lower than the opening levels.

As per the pivot charts, the key support level for the Nifty is placed at 17,289, followed by 17,246. If the index moves up, the key resistance levels to watch out for are 17,402 and 17,472.

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's major indexes closed lower on Thursday as concerns mounted ahead of closely watched monthly nonfarm payrolls numbers due on Friday that the Federal Reserve's aggressive interest rate stance will lead to a recession.

The Dow Jones Industrial Average fell 346.93 points or 1.15 percent to 29,926.94; the S&P 500 lost 38.76 points or 1.02 percent to 3,744.52; and the Nasdaq Composite dropped 75.33 points or 0.68 percent to 11,073.31.

Asian Markets

Shares in the Asia-Pacific fell on Friday ahead of the monthly US jobs report, which is likely to guide the Federal Reserve’s monetary decision in November.

in Japan fell 1.35 percent and the Topix index slipped 1.29 percent. South Korea’s Kospi slipped 0.8 percent and the Kosdaq dropped 0.93 percent. In Australia, the S&P/ASX 200 fell 0.64 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.41percent. Markets in mainland China remain closed for a holiday.

SGX Nifty

Trends in SGX Nifty indicate a negative opening for the broader index in India with a loss of 39 points. The Nifty futures were trading around 17,277 levels on the Singaporean exchange.

Oil prices extend gains after OPEC+ output cut plan

Oil prices rose on Friday, continuing an upward trend after OPEC+ this week agreed to tighten global supply with a deal to cut production targets by 2 million barrels per day (bpd).

The cut from the Organization of Petroleum Exporting Countries and allies including Russia, together known as OPEC+, is its largest reduction since 2020 and comes ahead of a European Union embargo on Russian oil. The decision would squeeze supplies in an already tight market, adding to inflation.

Brent crude futures rose 19 cents to $94.61 a barrel by 0002 GMT. WTI crude futures rose 24 cents to $88.69 a barrel, after earlier hitting $89.37 per barrel, the highest since September 14.

World Bank downgrades India's economic growth forecast to 6.5 percent for FY23

The World Bank on Thursday projected a growth rate of 6.5 percent for the Indian economy for the fiscal year 2022-23, a drop of one percent from its previous June 2022 projections, citing deteriorating international environment.

In its latest South Asia Economic Focus released ahead of the annual meeting of the International Monetary Fund and the World Bank, the Bank, however, noted that India is recovering stronger than the rest of the world.

Sebi orders Brickwork Ratings to wind up, in first such action against a credit rating agency

Market regulator, Seurities and exchange board of India (Sebi) on October 6 issued a winding up order against Brickwork Ratings citing major lapses in its operations including in the case of Bhushan Steel. The action follows probes by the market regulator, along with banking regulator,the Reserve Bank of India (RBI).

In its order, Sebi cited failure on the part of the rating agency to "exercise proper skill, care and diligence, while discharging its duties as a credit rating agency".

Fed's Evans: rates headed to 4.5-4.75 percent by spring of 2023

Chicago Federal Reserve Bank President Charles Evans on Thursday said the US central bank's policy rate is likely headed to 4.5-4.75 percent by the spring of 2023 as the Fed increases borrowing costs to bring down too-high inflation.

"We have further to go" on rate hikes, Evans said at an annual meeting of the Illinois Chamber in Chicago. "Inflation is high right now and we need a more restrictive setting of monetary policy."

Though Evans and other Fed policymakers now acknowledge they were late to recognize how persistent and widespread inflation would become, they have tried to make up that with speed, increasing the policy rate to a 3-3.25 percent from near zero just seven months.

Citi expects global equities to rally 18 percent by end-2023

Citigroup is expecting global equities to rise about 18 percent from now through the end of 2023, saying beaten down valuations from a relentless selloff this year may attract investors, although it warned of "considerable risks" of an economic slowdown.

Global stock are trading well below their peaks, with the US benchmark S&P 500 index in a bear market for most of this year as central banks' war on inflation has led to a steep rise in interest rates and sparked fears of an economic downturn.

"Highly valued stocks have been hit hard, with the MSCI AC World Growth index derating from 31x to 19x," Citi's Robert Buckland said, referring to price-to-earnings(PE) ratios. "We think much of this derating is now done."

FII and DII data

Foreign institutional investors (FIIs) remained net buyers to the tune of Rs 279.01 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 43.92 crore on October 6, as per provisional data available on the NSE.

Japan Aug household spending rises annually on reopening

Japanese households increased spending in August compared with a year earlier as the economy continued to recover from COVID-19 restrictions, but rising prices are clouding the outlook for further gains. Household spending rose 5.1 percent in August from a year earlier, government data showed on Friday. The reading was lower than economists' median estimate for a 6.7 percent gain and followed a 3.4 percent rise in July.

With inputs from Reuters and other agencies
Sandip Das
first published: Oct 7, 2022 07:54 am