The Indian equity market is expected to open in the red as trends on the SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 105 points.
The BSE Sensex fell 59 points to 57,833, while the Nifty50 declined 28.30 points to 17,276 and formed bullish candle which resembles Spinning Top kind of pattern formation on the daily charts, continuing to struggle around its 20-day SMA (17,353) for the third session in a row.
As per the pivot charts, the key support levels for the Nifty are placed at 17,203, followed by 17,130. If the index moves up, the key resistance levels to watch out for are 17,365 and 17,454.
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 ended lower on Friday after escalating tensions in Ukraine and US warnings of a potential Russian invasion prompted investors to dump risky assets in the run-up to a long weekend.
The Dow Jones Industrial Average fell 0.68 percent to end at 34,079.18 points, while the S&P 500 lost 0.72 percent to 4,348.87. The Nasdaq Composite dropped 1.23 percent to 13,548.07.
The indices logged weekly declines for the second straight week, buffeted by rising tensions between Moscow and the West over Ukraine. For the week, the S&P 500 fell 1.6 percent, the Dow lost 1.9 percent and the Nasdaq declined 1.8 percent.
Asian Markets
Asian share markets pared sharp early losses on Monday as a glimmer of hope emerged for a diplomatic solution to the Russian-Ukraine standoff, though there remained plenty of devil in the detail.
MSCI's broadest index of Asia-Pacific shares outside Japan pared their losses to be down 0.4 percent, while Japan's Nikkei halved its drop to be down 0.9 percent.
SGX Nifty
Trends on SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 105 points. The Nifty futures were trading around 17,175 levels on the Singaporean exchange.
Russia, France agree to work for east Ukraine ceasefire; Joe Biden willing to meet Vladimir Putin
French President Emmanuel Macron and Russian leader Vladimir Putin on Sunday agreed to work for a ceasefire in eastern Ukraine, Macron's office said.
In a phone conversation lasting 105 minutes, they also agreed on "the need to favour a diplomatic solution to the ongoing crisis and to do everything to achieve one", the Elysee said, adding that both countries' foreign ministers would meet "in the coming days".
US President Joe Biden is also willing to meet Russia's Vladimir Putin "at any time" to defuse Ukraine war tensions, his top diplomat said Sunday, warning Russia appeared on the verge of invading its neighbor.
Oil jumps on fresh warnings over Ukraine-Russia conflict
Oil prices gained more than $1 in early trade on Monday on rising jitters over potential conflict between Russia and Ukraine, with the US and European Union making clear Russia would face sanctions if it invaded its neighbour.
Brent crude futures were up $1.34, or 1.4 percent, at $94.88 a barrel at 2312 GMT after hitting a high of $95.00 in early trade. US West Texas Intermediate (WTI) crude futures were up $1.68, or 1.8 percent, at $92.75 a barrel after hitting a high of $92.93.
Federal Reserve officials lean against large increase to kick off rate hikes
Federal Reserve officials on Friday squelched what had been rising market expectations for an aggressive initial response to 40-year-high US inflation, signaling that steady interest rate hikes should be enough to do the trick.
"I don’t see any compelling argument to taking a big step at the beginning," New York Federal Reserve Bank President John Williams, the No. 2 official on the central bank's policy-setting panel, told reporters after a speech.
Fed Governor Lael Brainard - President Joe Biden's nominee to be vice chair at the Fed - said officials will likely kick off a "series of rate increases" at their upcoming meeting in March, followed by decreases in the size of the Fed's balance sheet "in coming meetings."
Japan's February factory activity growth falls to 5-month low
Japan's manufacturing activity expanded at the slowest pace in five months in February as output contracted, underscoring the prolonged impact that global supply chain disruptions are having on the world's third-largest economy.
The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) fell to a seasonally adjusted 52.9 from a final 55.4 in the previous month. A reading below 50 indicates contraction from the previous month, above 50 expansion.
As stocks swing, investors bet choppy markets are here to stay: Report
After a turbulent start to the year, investors are betting stock market volatility isn’t going away anytime soon. While tensions between Russia and Ukraine have been the most recent driver of stock market gyrations, many expect inflation, uncertainty over monetary policy and stretched valuations to keep stirring asset prices this year, even if geopolitical fears subside.
The Cboe Volatility Index, often called Wall Street's "fear gauge,” recently stood at 29, some 11 points higher than its historical median. Volatility futures at least eight months out show markets pricing increased stock market gyrations for much of the year. Some 78 percent of US investment professionals responsible for fund selection and portfolio construction anticipate a rise in stock market volatility in 2022, according to a recently released Natixis Investment Managers Survey.
FII and DII data
Foreign institutional investors (FIIs) have net sold Rs 2,529.96 crore worth of shares, whereas domestic institutional investors (DIIs) have net bought Rs 1,929.08 crore worth of shares in the Indian equity market on February 18, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Three stocks – Escorts, Indiabulls Housing Finance, and Punjab National Bank – are under the F&O ban for February 21. 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
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