The Indian stock market is expected to open in the red as trends on SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 147 points.
On January 21, the BSE Sensex declined 427.44 points to 59,037, while the Nifty50 dropped 140 points to 17,617 and formed Doji kind of pattern on the daily charts as the closing was near its opening levels. During the week gone by, the index fell 3.5 percent and formed large bearish candle on the weekly scale.
According to pivot charts, the key support levels for the Nifty are placed at 17,499.47, followed by 17,381.73. If the index moves up, the key resistance levels to watch out for are 17,721.27 and 17,825.33.
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's main indexes ended sharply lower on Friday as Netflix shares plunged after a weak earnings report, capping a brutal week for stocks that saw the S&P 500 and Nasdaq log their biggest weekly percentage drops since the onset of the pandemic in March 2020.
The Dow Jones Industrial Average fell 450.02 points, or 1.3%, to 34,265.37, the S&P 500 lost 84.79 points, or 1.89%, to 4,397.94 and the Nasdaq Composite dropped 385.10 points, or 2.72%, to 13,768.92.
Asian share markets slipped on Monday with the Federal Reserve expected to confirm it will soon start draining the massive liquidity that has fuelled the huge gains in growth stocks in recent years. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.1% and Japan's Nikkei 1.0%.
Trends on SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 147 points. The Nifty futures were trading around 17,489 levels on the Singaporean exchange.
Billionaire Mukesh Ambani-led Reliance Industries Ltd (RIL) reported a net profit of Rs 20,539 crore in the third quarter of 2021-22, up 37.9% year-on-year as all business verticals saw strong growth, the oil-to-chemical (O2C), telecom and retail conglomerate said on January 21.
The net profit of the company was boosted by a one-time gain of Rs 2,836 crore from sale of its upstream shale gas assets in Eagleford in Texas, USA, with which the company exited from the shale gas play in North America. The consolidated revenue for the country’s most valuable company by market capitalisation rose 52.2% YoY to Rs 209,823 crore in the quarter. The company said that it clocked record earnings before interest, tax, depreciation and amortization (EBIDTA) led by its O2C, oil and gas, retail and digital services.
The Indian economy has "some bright spots and a number of very dark stains" and the government should target its spending "carefully" so that there are no huge deficits, noted economist and former RBI Governor Raghuram Rajan said on January 23.
"My greater worry about the economy is the scarring to the middle class, the small and medium sector, and our children's minds, all of which will come into play after an initial rebound due to pent up demand. One symptom of all this is weak consumption growth, especially for mass consumption goods," Rajan told PTI in an e-mail interview.
Oil prices climb 1% on fears of tighter supply
Oil prices jumped on Monday as geopolitical tensions in Eastern Europe and the Middle East heightened concerns about an already tight supply outlook, while OPEC and its allies continued to struggle to raise their output.
Brent crude futures rose 87 cents, or 1.0%, to $88.76 a barrel by 0100 GMT, reversing a 0.6% loss on Friday. U.S. West Texas Intermediate (WTI) crude futures gained 86 cents, or 1.0%, to $86.00 a barrel, having fallen 0.5% on Friday.
Japan Jan factory growth hits 4-year high, but services contract-flash PMI
Japan's factory activity grew at the fastest pace in four years in January as output growth picked up, though pressure from a persistent chip shortage, rising input prices and the coronavirus pandemic clouded the outlook.
The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) rose to a seasonally adjusted 54.6 from the prior month's final of 54.3 to mark the fastest pace of expansion since January 2018.
Manufacturers reported the fastest increase in output prices since July 2008, suggesting firms were increasingly passing on higher input costs, which continued to rapidly rise.
Axis Bank, HDFC Asset Management Company, Apollo Pipes, Apollo Tricoat Tubes, Burger King India, Cera Sanitaryware, Chennai Petroleum Corporation, Craftsman Automation, Deepak Nitrite, Greenpanel Industries, GRM Overseas, Hindustan Fluorocarbons, Indian Energy Exchange, IIFL Securities, IndiaMART InterMESH, Kirloskar Ferrous Industries, Mahindra EPC Irrigation, Meghmani Finechem, Quick Heal Technologies, Music Broadcast, The Ramco Cements, Reliance Home Finance, SBI Cards and Payment Services, Shemaroo Entertainment, Shiva Cement, Shriram Transport Finance, Steel Strips Wheels, Sudarshan Chemical Industries, Supreme Industries, and Zensar Technologies.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 3,148.58 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 269.36 crore in the Indian equity market on January 21, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Five stocks – BHEL, Escorts, Indiabulls Housing Finance, Vodafone Idea, and NALCO – are under the F&O ban for January 24. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.With inputs from Reuters & other agencies