The market is expected to open in the green as trends on the SGX Nifty indicate a gap-up opening for the broader index with a gain of 286 points.
The BSE Sensex plunged 2,702 points or 4.7 percent to 54,530, while the Nifty50 closed way below its 200-day exponential moving average (16,881), falling 815 points or 4.78 percent to 16,248, the lowest closing level since September 2, 2021, and formed a large bearish candle on the daily charts. It was also the expiry day for monthly futures and options contracts.
As per the pivot charts, the key support levels for the Nifty are placed at 16,066, followed by 15,883. If the index moves up, the key resistance levels to watch out for are 16,568 and 16,887.
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 stocks ended sharply higher on Thursday, led by a 3 percent gain in the Nasdaq, in a dramatic market reversal as US President Joe Biden unveiled harsh new sanctions against Russia after Moscow began an all-out invasion of Ukraine. The S&P 500 rose more than 1 percent, ending a four-day slide amid worries over the escalating crisis. The Dow also ended in positive territory.
The Dow Jones Industrial Average rose 92.07 points, or 0.28 percent, to 33,223.83, the S&P 500 gained 63.2 points, or 1.50 percent, to 4,288.7 and the Nasdaq Composite added 436.10 points, or 3.34 percent, to 13,473.59.
Asia-Pacific shares rose on Friday as investors assessed the Russia-Ukraine conflict following a massive comeback on Wall Street overnight. Japan’s Nikkei 225 was up 1.05 percent, while the Topix gained 0.33 percent. The S&P/ASX 200 in Australia advanced 0.4 percent.
Trends on the SGX Nifty indicate a gap-up opening for the broader index in India with a gain of 286 points. The Nifty futures were trading around 16,523 levels on the Singaporean exchange.
With economic growth in India having lost some momentum due to a third wave of COVID-19 and with inflation on a downward trend, the country's monetary policy committee chose to retain its policy rate and stance, minutes of its February 10 meeting showed.
"Inflation pressures in India continue to emanate largely from supply side factors, and the recent print also reflects adverse base effects," Reserve Bank of India (RBI) Governor Shaktikanta Das wrote in the minutes published on Thursday.
Market regulator Securities and Exchange Board of India on February 24 issued an updated circular wherein it has extended the deadline to implement the new systems of compliance pertaining to segregation and monitoring of collateral at client level.
As per the original notice issued on July 20, the new compliance framework was supposed to come in force from December 1, but it had to be postponed due to the fiasco related to Karvy Stockbroking where clients’ shares had been pledged illegally as collateral against loan.
Global bond yields drop as Russia-Ukraine conflict puts the US Fed in a tight spot. Bond yields across geographies dropped today on expectations that the geopolitical risks stemming from conflict between Russia and Ukraine would prevent the US Federal Reserve from aggressively hiking rates.
The yield on 10-year US notes dropped as much as 13 basis points (bps) to 1.86 percent. Yields on 10-year Australian securities fell as much as 12 bps to 2.15 percent. The rate on similar-maturity New Zealand debt fell three bps to 2.76 percent. Singapore's 10-year bond yield fell 6 bps to 1.88 percent. Germany's 10-year bond yield lost 7 bps to 0.15 percent, United Kingdom's 10-year bond yield 9bps to 1.39 percent, France's 10-year bond yield 5 bps to 0.68 percent, Italy's 10-year bond yield 4bps to 1.90 percent, Spain's 10-year bond yield 5 bps to 1.21 percent, the Netherlands' 10-year bond yield 6 bps to 0.41 percent, Portugal's 10-year bond yield 6 bps to 1.08 percent, Greece's 10-year bond yield 2 bps to 2.58 percent, Switzerland's 4 bps to 0.19 percent, according to Bloomberg database. One basis point is one-hundredth of a percentage point.
Chief Economic Advisor (CEA) V Anantha Nageswaran on Thursday said that the Indian economy is now poised for recovery but high crude oil price is a cause for concern. The banking sector in the country is stable, capital is available and credit offtake is poised to take off, he said at a webinar organised by Bharat Chamber of Commerce.
"We are not unique to the phenomenon of uncertain growth and high inflation due to the pandemic. Developed countries are also facing the same problem,” he said.
Oil pare gains after Ukraine invasion
Oil futures pulled back from multi-year records after Russia's invasion of Ukraine and responses from other countries. US crude settled up 0.77 percent at $92.81 per barrel, but well below its session high of $100.54 and Brent settled up 2.3 percent at $99.08 compared with its session high of $105.79.
The National Stock Exchange (NSE) on February 24, notified of the changes in eligibility criteria of NIFTY equity indices and replacement of stocks in various indices as part of its periodic review. These changes shall become effective from March 31, 2022 (close of March 30, 2022).
As per the existing criteria, the minimum listing history requirement in case of new listing and companies traded subsequent to scheme of arrangement for corporate events requires constituents to have a minimum listing history of three months. This has now been reduced to minimum listing history of one month.
“The change in eligibility criteria would be applicable with an immediate effect to all NIFTY equity indices which currently mandates requirement of minimum of 3 months of listing for inclusion in the index”, the release from NSE said.
FII and DII data
With the invasion of Ukraine by Russia and boiling oil prices, foreign institutional investors (FIIs) net sold Rs 6,448.24 crore worth of Indian equities, but domestic institutional investors (DIIs) managed to compensate the FII outflow by net buying Rs 7,667.75 crore worth of shares on February 24, as per provisional data available on the NSE.With inputs from Reuters & other agencies