The Indian stock market is expected to open in the green as trends on SGX Nifty indicate a positive opening for the broader index in India with a gain of 34 points.
The BSE Sensex fell 778 points to 55,469 yesterday, while the Nifty50 plunged 188 points to 16,606 and formed a Doji kind of pattern on the daily charts as the index recovered losses and closed near opening losses.
As per the pivot charts, the key support level for the Nifty is placed at 16,497, followed by 16,388. If the index moves up, the key resistance levels to watch out for are 16,697 and 16,787.
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:
Wall Street ended sharply higher on Wednesday after Federal Reserve Chair Jerome Powell signalled the central bank would likely raise interest rates less than some investors had feared.
The Dow Jones Industrial Average rose 1.79% to end at 33,891.35 points, while the S&P 500 gained 1.86% to 4,386.54. The Nasdaq Composite climbed 1.62% to 13,752.02.
Asian shares crept higher on Thursday after reassuring comments from the Federal Reserve helped Wall Street rally, though the war in Ukraine sent oil and resource prices spiralling ever higher in a grim omen for global inflation.
MSCI's broadest index of Asia-Pacific shares outside Japan nudged up 0.4% and away from its recent 15-month low. Japan's Nikkei added 1.0%, while the rush to commodities lifted resource-rich Australia 0.9%.
Trends on SGX Nifty indicate a positive opening for the broader index in India with a gain of 34 points. The Nifty futures were trading around 16,651 levels on the Singaporean exchange.
Oil jumps, Brent above $116/bbl as supply issues persist
Oil prices extended their rally on Thursday, with Brent rising above $116 a barrel, as trade disruption and shipping issues from Russian sanctions over the Ukraine crisis sparked supply worries while U.S. crude stocks fell to multi-year lows.
Brent crude futures rallied to $116.83 a barrel, the highest since August 2013. The contract was at $116.60 a barrel, up $3.67 by 0112 GMT. US West Texas Intermediate crude was at $113.01 a barrel, up $2.41 after touching a fresh 11-year high of $113.31 a barrel.
China's Feb services activity expands at slowest rate in six months
Activity in China's services sector in February expanded at the slowest pace in six months, as the sprawling industry reels from the government's tough containment measures to stop the spread of local COVID-19 outbreaks, a survey showed on Thursday.
The Caixin/Markit services Purchasing Managers' Index (PMI) dropped to 50.2 in February - the lowest since August and only a touch above the 50-point mark that separates growth from contraction on a monthly basis - from 51.4 in January.
February exports rise 22.3% YoY as global orders remain strong
Owing to strong global orders, India's merchandise exports rose by 22.36 percent in February this year as compared to February 2021. Impressively, exports also rose by more than 21.8 percent as compared to two years back or February 2020, just before the pandemic struck.
Data released by the Commerce and Industry Ministry on March 2 showed outbound trade rose to $33.8 billion in February, up from $27.63 billion in February 2020. However, export growth in the latest month came down from the 38.9 percent rise seen in December 2021, and 23.7 percent in January 2022.
Cumulatively, exports grew by 45.8 percent in the April-February period of FY22 (2021-22) as compared to the same period of 2020, to register total exports worth $374 billion. In 2019-20, only the last two months of which had an economic downturn owing to the COVID pandemic, the cumulative exports over the corresponding period was $256.5 billion, the ministry said.
Global air passenger numbers to exceed pre-COVID level in 2024: IATA
The total number of air passengers in the world will reach the four-billion mark in 2024, exceeding the 2019 pre-Covid level by three percent, global airlines body IATA said on Wednesday. In 2021, overall traveller numbers were 47 percent of the pre-COVID level, the International Air Transport Association (IATA) mentioned.
"This is expected to improve to 83 percent in 2022, 94 percent in 2023, 103 percent in 2024 and 111 percent in 2025,” it added.
Fed's Powell says still appropriate to raise interest rates by 25 bps in March
Federal Reserve chair Jerome Powell said he is inclined to support a 25 basis point rate increase at the March policy meeting but said the central bank is prepared to move more aggressively later if inflation does not abate as expected.
"I’m inclined to propose and support a 25 basis point rate hike," Powell testified before Congress on Wednesday about the Fed's upcoming March meeting. He added that the central bank is "prepared to move more aggressively by raising the federal funds rate by more than 25 basis points" at one or more meetings if inflation does not come down later this year as expected.
FII and DII data
The selling by foreign institutional investors (FIIs) seems unstoppable given the rising geopolitical tensions between Ukraine and Russia, as they have net sold shares worth Rs 4,338.94 crore. However, domestic institutional investors (DIIs) have tried to compensate the FII outflow by purchasing shares worth Rs 3,061.70 crore on March 2, as per provisional data available on the NSE.
Gold flat as Fed assuages fears of aggressive rate hike
Gold prices were flat on Thursday as risk appetite improved after the US Federal Reserve chairman tried to assuage fears about aggressive interest rate hikes, offsetting safe-haven demand spurred by the Russia-Ukraine conflict. Spot gold held its ground at $1,927.18 per ounce by 0117 GMT. US gold futures rose 0.4% to $1,929.90.
With inputs from Reuters & other agencies