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Trends on SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 243 points.

January 27, 2022 / 08:00 AM IST

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 243 points.

The benchmark indices fell 5.5 percent in previous five consecutive sessions before seeing a bounce back on January 25. The BSE Sensex rose 366.64 points to 57,858.15, while the Nifty50 jumped 128.90 points to 17,278 on Tuesday and formed bullish candle on the daily charts.

According to pivot charts, the key support levels for the Nifty are placed at 16,973.4, followed by 16,668.9. If the index moves up, the key resistance levels to watch out for are 17,445.8 and 17,613.7.

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 Fed likely to hike rates in March as Powell vows sustained inflation fight

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The Federal Reserve on Wednesday said it is likely to hike interest rates in March and reaffirmed plans to end its bond purchases that month in what U.S. central bank chief Jerome Powell pledged will be a sustained battle to tame inflation.

"The committee is of a mind to raise the federal funds rate at the March meeting assuming that the conditions are appropriate for doing so," Powell said in a news conference, pinning down a policy statement from the central bank's Federal Open Market Committee that only said rates would rise "soon."

US Markets

U.S. stocks retreated Wednesday, erasing strong gains, after the Federal Reserve signaled an interest rate hike could be coming soon, while supply concerns stemming from tension between Russia and Ukraine saw oil prices touch highs not seen since 2014.

The Dow Jones Industrial Average closed down 0.38%, while the S&P 500 fell 0.15% and the Nasdaq Composite gained just 0.02%.

Asian Markets

Asia-Pacific markets declined on Thursday as investors digest an overnight update from the U.S. Federal Reserve that indicated the central bank plans to raise interest rates as soon as March. In Japan, the Nikkei 225 slipped 1.67% while the Topix was down 1.23%.

SGX Nifty

Trends on SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 243 points. The Nifty futures were trading around 16,977 levels on the Singaporean exchange.

 

Oil breaks $90/bbl for the first time since 2014 on Russia tensions

Oil rose on Wednesday, touching $90 a barrel for the first time in seven years as tight supply and rising political tensions between Russia and Ukraine added to concerns about further disruption in an already-tight market.

Brent crude gained $1.76, or 2%, to settle at $89.96 a barrel, after surpassing $90 for the first time since October 2014. U.S. West Texas Intermediate (WTI) crude closed up $1.75, or 2%, to $87.35 a barrel.

IMF raises India's GDP growth forecast by 50 bps to 9% for FY23

The International Monetary Fund (IMF) has raised its forecast for growth in India's gross domestic product (GDP) in FY23 by 50 basis points (bps) to 9 percent. India's GDP growth forecast for FY24 was also raised by 50 bps to 7.1 percent.

Explaining the upward revision in an update to its World Economic Outlook report, released on January 25, the IMF said it expects an improvement in India's credit growth – which would boost consumption and investment – and "better-than-anticipated performance of the financial sector".

Adani Wilmar IPO opens today

Adani Wilmar Ltd, incorporated in 1999 as a joint venture between Adani Group and Wilmar Group of Singapore, is an FMCG company offering kitchen commodities for Indian consumers including edible oil, wheat flour, rice, pulses, and sugar.

Adani Wilmar will float its Rs 3,600 crore initial public offering (IPO) on January 27 and close it on January 31. The Rs 3,600 crore IPO involves only a fresh issuance of about 15.65 crore shares and does not include offer for sale.

IMF's Gita Gopinath warns economies will need to adapt to higher global interest rates

Gita Gopinath has warned monetary policy is at a "critical juncture" in most countries and that economies will need to adapt to higher interest rates globally.

"Where inflation is broad-based alongside a strong recovery, like in the United States, or high inflation runs the risk of becoming entrenched, as in some emerging market and developing economies and advanced economies, extraordinary monetary policy support should be withdrawn," Gopinath wrote in an article accompanying the IMF's update to its World Economic Outlook report, released on January 25.

Results today

Bharat Heavy Electricals, Punjab National Bank, RBL Bank, Canara Bank, Indus Towers, Accelya Solutions India, AIA Engineering, Arvind, Aurionpro Solutions, Birlasoft, CG Power and Industrial Solutions, Chalet Hotels, Coforge, Colgate-Palmolive, Dalmia Bharat, Exxaro Tiles, Fino Payments Bank, GHCL, Gujarat Mineral Development Corporation, Home First Finance Company, HSIL, Laurus Labs, LIC Housing Finance, Mahindra Logistics, CE Info Systems, Motilal Oswal Financial Services, Nippon Life India Asset Management, PSP Projects, Route Mobile, Transport Corporation of India, Vaibhav Global, Wabco India, and Wockhardt.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 7,094.48 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 4,534.53 crore in the Indian equity market on January 25, as per provisional data available on the NSE.

With inputs from Reuters & other agencies



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Sandip Das
first published: Jan 27, 2022 07:50 am
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