Indian equity benchmark indices are likely to open in the green on February 28 as trends on SGX Nifty indicate a positive opening for the domestic market with a gain of 42 points.
In the previous session, the BSE Sensex surged 1,329 points to 55,858, while the Nifty50 jumped 410 points to 16,658 and formed bullish candle on the daily charts, but the index needs to surpass and stay above 200-day exponential moving average for few days to gain strength.
As per the pivot charts, the key support levels for the Nifty are placed at 16,508, followed by 16,358. If the index moves up, the key resistance levels to watch out for are 16,779 and 16,899.
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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
The Dow on Friday registered its biggest daily percentage gain since November 2020 with the market rebounding for a second day from the sharp selloff leading up to Russia's invasion of Ukraine. Oil prices fell below $100 a barrel, easing some concerns about higher energy costs, and all 11 of the major S&P 500 sectors ended up on the day. The S&P 500 and Nasdaq also posted gains for the week.
The Dow Jones Industrial Average rose 834.92 points, or 2.51%, to 34,058.75, the S&P 500 gained 95.95 points, or 2.24%, to 4,384.65 and the Nasdaq Composite added 221.04 points, or 1.64%, to 13,694.62.
Asian Markets
Shares in Asia-Pacific were mixed on Monday as investors monitor the Russia-Ukraine crisis and related sanctions. Japan’s Nikkei 225 shed 0.28%, while the Topix was almost flat. In South Korea, the Kospi also erased losses to rise 0.14%, and the Kosdaq advanced 0.49%.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the Indian equities with a gain of 42 points. The Nifty futures were trading around 16,702 levels on the Singaporean exchange.
Oil Prices
Crude oil jumped after Western nations imposed new sanctions on Russia for its invasion of Ukraine, including blocking some banks from the SWIFT international payments system.
The ramp-up in tensions heightened fears that oil supplies from the world's second-largest producer could be disrupted, sending Brent crude futures up $4.21 or 4.3% at $102.14. US West Texas Intermediate (WTI) crude futures were up $4.58 or 5.0% at $96.17 a barrel.
Investors brace for volatility as US allies move to cut Russia off from SWIFT
Investors were preparing on Saturday for more wild gyrations in asset prices after Western nations announced a harsh set of sanctions to punish Russia for its invasion of Ukraine, including blocking some banks from the SWIFT international payments system.
New measures announced by the United States, Britain, Europe and Canada also include restrictions on the Russian central bank's international reserves. The sanctions will be implemented in the coming days. Investors had been fearing Russia's getting kicked off SWIFT, the world's main international payments network, as it would disrupt global trade and hurt Western interests as well as hitting Russia.
Amid concerns raised by the Indian manufacturers and exporters over the fresh sanctions imposed on Russia, the Commerce Ministry-controlled Federation of Indian Export Organisations (FIEO) has advised 25 export promotion councils under its purview not to worry about exports of agriculture, pharmaceutical and petroleum products.
The communication of FIEO to its member export promotion councils on February 27 assumes significance against the backdrop of sanctions imposed on Russia by the Office of Foreign Assets Control (OFAC), a financial intelligence and enforcement agency of the US Treasury Department.
Gold set for best month since May as appeal surges on Ukraine crisis
Gold prices rose more than 1% on Monday and were set for their best monthly gain in nine, after Western countries slapped fresh sanctions on Russia for invading Ukraine and President Vladimir Putin put his country's nuclear deterrent on high alert.
Spot gold rose 1.2% to $1,909.89 per ounce by 0124 GMT. US gold futures climbed 1.1% to $1,908.30.
Cabinet approves up to 20% FDI in LIC under automatic route
The Union Cabinet has approved foreign direct investment under the automatic route in the Life Insurance Corporation of India (LIC), government sources told CNBC-TV18 on February 26. Up to 20 percent FDI will now be permitted under the automatic route in LIC and the existing FDI policy has also been “simplified and enhanced”, they added.
Notably, the FDI ceiling for public sector banks is 20 percent under the approval route, and a similar limit has been maintained for LIC. The choice of automatic route however is expected to expedite the capital raising process.
FPIs pull out Rs 35,506 crore in February
Continuing the selling streak for the fifth consecutive month, foreign portfolio investors (FPIs) pulled out as much as Rs 35,506 crore out of the Indian markets in February. FPIs have been pulling funds out of the Indian markets since October 2021 and the quantum of outflow in February 2022 is highest since March 2020 when overseas investors had pulled out Rs 1,18,203 crore.
FII and DII data
The relentless selling by foreign institutional investors (FIIs) continued in Indian equities amid geopolitical tensions and global growth worries, as they have net sold Rs 4,470.70 crore worth of shares. However, domestic institutional investors (DIIs) have managed to compensate the FII outflow by buying shares worth Rs 4,318.24 crore on February 25, as per provisional data available on the NSE.
With inputs from Reuters & other agencies
