The Indian stock market is expected to open on a cautious note as trends on SGX Nifty indicate a positive opening for the index in India with a 11-points gain.
On September 23, the benchmark indices ended at record closing high. The BSE Sensex surged 958.03 points to 59,885.36, while the Nifty50 climbed 276.30 points to 17,823 and formed bullish candle on the daily charts as the closing was higher than opening levels.
According to pivot charts, the key support levels for the Nifty are placed at 17,698.37, followed by 17,573.83. If the index moves up, the key resistance levels to watch out for are 17,895.67 and 17,968.43.
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:
U.S. stocks gained more than 1% on Thursday as investors appeared relieved about the Federal Reserve’s stance on tapering stimulus and raising interest rates.
The Dow Jones Industrial Average rose 506.5 points, or 1.48%, to 34,764.82, the S&P 500 gained 53.34 points, or 1.21%, to 4,448.98 and the Nasdaq Composite added 155.40 points, or 1.04%, to 15,052.24.
Stocks in Asia-Pacific were mixed in Friday morning trade, as investors continue to watch developments surrounding China Evergrande Group.
The Nikkei 225 in Japan jumped 1.95% in morning trade while the Topix index gained 2.1%. South Korea’s Kospi edged 0.49% higher.
Trends on SGX Nifty indicate a cautious opening for the index in India with a 11-points gain. The Nifty futures were trading at 17,840 on the Singaporean Exchange around 07:30 hours IST.
Oil prices rise, hit 2-month highs on supply worries
Oil prices rose on Thursday, with Brent crude touching its highest level in more than two months, supported by growing fuel demand and a draw in U.S. crude inventories as production remained hampered in the Gulf of Mexico after two hurricanes.
Brent crude settled up $1.06, or 1.4%, at $77.25 a barrel, its highest price since mid-July. U.S. West Texas Intermediate (WTI) crude rose $1.07, or 1.5%, to $73.30 a barrel.
Bank of England holds stimulus, record-low interest rate
The Bank of England on Thursday maintained its stimulus amount and record-low interest rate, even as it warned that UK annual inflation would top four percent this year. The BoE 's nine-strong monetary policy committee (MPC) voted unanimously to hold its key borrowing cost at 0.1 percent, a statement said.
Policymakers voted 7-2 in favour of keeping its so-called quantitative easing stimulus at almost £900 billion ($1.2 trillion, 1.0 trillion euros).
FPIs stock holding value soars to $630 billion as of August: Report
Even as foreign funds are getting jittery about the domestic market due to the steeply higher valuation amid the massive market rally, their holding in the domestic equities rose to $630 billion as of August, according to a American brokerage report.
As of June this year, the value of FII investment was only $592 billion, which means that as the market rallied frenetically, their holding value jumped by $38 billion even though their net incremental investment was almost nil between this period.
Dollar slumps as risk appetite rebounds
The dollar fell across the board on Thursday as improved risk sentiment in global financial markets wiped out its gains in the previous session after the U.S. Federal Reserve flagged plans to dial back its stimulus this year.
The U.S. Dollar Currency Index, which measures the greenback against a basket of six rivals, was 0.5% lower at 93.037. The index, which had risen 0.25% on Wednesday, was on pace for its biggest daily percentage drop in a month but remains close to the near 10-month high touched in late August.
US jobless claims tick up from near a pandemic low
The number of Americans applying for unemployment aid rose last week for a second straight week to 351,000, a sign that the delta variant of the coronavirus may be disrupting the job market’s recovery, at least temporarily.
As the job market has strengthened, unemployment aid applications, which generally track layoffs, have tumbled since topping 900,000 early this year, reflecting the economy’s reopening after the pandemic recession.
RBI announces Rs 15000 crore bond buy, sale on September 30
The Reserve Bank of India (RBI) on September 23 announced Open Market Purchase and simultaneous sale of government bonds for Rs 15,000 crore each on September 30. As announced in the Governor’s statement of June 04, 2021, the Reserve Bank will conduct the open market purchase of government securities under the G-sec Acquisition Programme (G-SAP 2.0) for an aggregate amount of Rs 15,000 crore on September 30, 2021, the RBI said in a release.
Also, the RBI will sell short-term maturity bonds for the same amount on that day, the RBI said. RBI conducts simultaneous buy and sale of government bonds to manage the yield curve in the bond market.
FII and DII data
Foreign institutional investors (FIIs) net acquired shares worth Rs 357.93 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 1,173.09 crore in the Indian equity market on September 23, as per provisional data available on the NSE.With inputs from Reuters & other agencies