Moneycontrol PRO
Open App

Top 10 things to know before the market opens today

Trends on SGX Nifty indicate a flat start for the broader indices in India with a gain of 25 points.

February 16, 2022 / 08:19 AM IST
Stock Market

Stock Market

The market is expected to open flat with positive bias as trends on the SGX Nifty indicate a positive start for the broader index in India with a gain of 25.50 points.

On Tuesday, the BSE Sensex spiked 1,736 points or 3 percent to 58,142, while the Nifty50 jumped 510 points or 3 percent to 17,352.50 and formed large bullish candle on the daily charts.

As per the pivot charts, the key support levels for the Nifty are placed at 17,003, followed by 16,653. If the index moves up, the key resistance levels to watch out for are 17,538 and 17,725.

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

Close

Wall Street ended sharply higher on Tuesday, as signs of de-escalating tensions along the Russia-Ukraine border sparked a risk-on session.

All three major indexes notched solid advances on the day, with market leading tech and tech-adjacent stocks providing the biggest boost and putting the Nasdaq, which gained 2.5%, out front.

The Dow Jones Industrial Average rose 422.67 points, or 1.22%, to 34,988.84, the S&P 500 gained 69.4 points, or 1.58%, to 4,471.07 and the Nasdaq Composite added 348.84 points, or 2.53%, to 14,139.76.

Asian Markets

Asian shares rallied on Wednesday as fears of a Russian invasion of the Ukraine this week dissipated after Moscow indicated it was returning some troops to base from exercises, delivering investors a measure of relief.

The tension between world powers over the Ukraine situation, which has developed into one of the deepest crises in East-West relations for decades, has been front-and-centre of investors' minds.

MSCI's broadest index of Asia-Pacific shares outside Japan surged 0.9% in early regional trade on Wednesday, playing catch-up with a rally in U.S. and European stocks on Tuesday.

Japan's Nikkei soared 1.9% to rebound from two days of falls, while Australia's S&P/ASX200 gained half a percent.

Elsewhere in the region, Hong Kong's Hang Seng Index jumped 1.1% early in the session, and China's CSI300 Index was up 0.4%.

SGX Nifty

Trends on SGX Nifty indicate a flat opening for the broader index in India with a gain of 25.50 points. The Nifty futures were trading around 17,373.50 levels on the Singaporean exchange.

SEBI makes separation of chairperson and MD, CEO roles voluntary

Market regulator Securities and Exchange Board of India (SEBI) on February 15 changed the requirement for listed companies to separate posts of chairperson and managing director (MD) or chief executive officer (CEO) to voluntary from mandatory. The decision was taken at a board meeting of the regulator. The tweaked rule will now fully come into force from April 1, 2022 after multiple delays.

According to SEBI, only 54 percent of the top 500 companies have so far complied with its rule. "Considering a rather unsatisfactory level of compliance achieved so far, with respect to this corporate governance reform, SEBI Board at this juncture, decided that this provision may not be retained as a mandatory requirement," the SEBI said in a press statement.

10-year US Treasury yield jumps 2.03% after geopolitical tensions cool

The benchmark 10-year US Treasury yield jumped 3.5 basis points to 2.031 percent on February 15, following statement from the Russian Defense Ministry that it had begun returning some troops to their bases, reported CNBC.

Earlier last week, the benchmark 10-year rate climbed above 2 percent following the hottest inflation reading in four decades. The yield on the 30-year Treasury bond also traded 2.9 basis points higher at 2.33 percent. An auction for three-year Treasury bonds was held on February 8.

Despite rising inflation, RBI unlikely to hike rates till August: Report

Despite retail inflation rising to 6.01 percent in January, and likely to remain elevated till April, a foreign brokerage report expects RBI to leave key policy rates unchanged throughout the first half of 2022. Swiss brokerage UBS Securities India sees the policy to change only from the second half wherein the Monetary Policy Committee (MPC) may deliver a 50 basis points hike in the second half starting from the August policy.

Tanvee Gupta-Jain, the chief economist at UBS Securities India said, the latest numbers are on expected line and the uptick was largely driven by an adverse base effect and continued supply side constraints.

Fed to raise rates 25 bps in March but calls for 50 bps grow louder

The U.S. Federal Reserve will kick off its tightening cycle in March with a 25-basis-point interest rate rise, a Reuters poll of economists found, but a growing minority say it will opt for a more aggressive half-point move to tamp down inflation.

While inflation is rising across the globe, it is particularly hot in the United States, hitting a 40-year high last month.

That is putting pressure on the Fed to not only raise rates from a record low but also to reduce its nearly $9 trillion balance sheet, drastically inflated by emergency bond purchases as the Fed resuscitated the economy from COVID-19 pandemic damage.

Now that the economy has recovered its pre-pandemic level, all 84 respondents in a Reuters poll taken Feb. 7-15 expected the Fed to raise the federal funds rate by at least 25 basis points at its upcoming March 15-16 meeting.

Almost a quarter of those respondents, 20, forecast a 50-basis-point move to 0.50-0.75% following debate in markets over the past week after Fed officials discussed the merits of such a move. Rate futures are pricing in more than a 50% likelihood of a half-point hike.

Vedant Fashions to debut today

The initial public offering (IPO) of Vedant Fashions is expected to make debut on exchanges on February 16.

The Vedant Fashions IPO had received a tepid response, being subscribed 2.57 times during February 4-8, largely supported by qualified institutional buyers whose reserved portion saw 7.49 times subscription. But demand at non-institutional investors and retail investors’ desk was muted, as their allotted quotas were subscribed 1.07 times and 39 percent, respectively.

The company mopped up Rs 3,149.19 crore through its public issue last week.

FII and DII data

Foreign institutional investors (FIIs) have made net selling of Rs 2,298.76 crore worth of shares, whereas domestic institutional investors (DIIs) have net bought Rs 4,411.60 crore worth of shares in the Indian equity market on February 15, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Four stocks - BHEL, Escorts, Indiabulls Housing Finance, and SAIL - are under the F&O ban for February 16. 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.

Gold Prices

Gold prices slipped on Wednesday, pulling further away from an eight-month peak scaled in the previous session, as signs of a slight de-escalation in the Russia-Ukraine standoff diminished the appeal of safe havens.

Spot gold was down 0.1% at $1,850.91 per ounce, as of 0110 GMT. U.S. gold futures dropped 0.2% to $1,852.40.

With inputs from Reuters & other agencies
Sandip Das
first published: Feb 16, 2022 08:16 am
Sections
ISO 27001 - BSI Assurance Mark