The Indian stock market is expected to open in the green as trends on SGX Nifty indicate a gap-up opening for the broader index in India with a gain of 110 points.
On March 28, the BSE Sensex climbed 231 points to 57,593, while the Nifty50 jumped 69 points to close at 17,222 and formed small bullish candle which resembles Hammer kind of pattern formation on the daily charts.
As per the pivot charts, the key support level for the Nifty is placed at 17,072.23, followed by 16,922. If the index moves up, the key resistance levels to watch out for are 17,303 and 17,385.
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:
The S&P 500 rose for a third day on Monday, as a sharp climb in shares of Tesla overshadowed weakness in energy and bank stocks, while Russia and Ukraine were poised to hold their first face-to-face peace talks in more than two weeks.
The Dow Jones Industrial Average rose 94.65 points, or 0.27%, to 34,955.89, the S&P 500 gained 32.46 points, or 0.71%, to 4,575.52 and the Nasdaq Composite added 185.60 points, or 1.31%, to 14,354.90.
Stocks across Asia-Pacific rose, following a tumble in oil prices overnight. Bitcoin meanwhile surged past a key level, and the yen continued to weaken. Hong Kong’s Hang Seng index jumped 0.77% in early trade. Mainland China’s Shanghai composite gained 0.31% while the Shenzhen component was up 0.51%. Japan’s Nikkei 225 was 0.8% higher, while the Topix rose 0.69%.
Trends on SGX Nifty indicate a gap-up opening for the broader index in India with a gain of 110 points. The Nifty futures were trading around 17,390 levels on the Singaporean exchange.
Oil drops on China demand worries, Ukraine peace talk hopes
U.S. crude futures slid in early trade on Tuesday, extending losses from the previous session on the prospect of a sharp drop in fuel demand as Shanghai shut down to curb a surge in COVID cases and as Ukraine and Russia headed for peace talks.
U.S. West Texas Intermediate (WTI) crude futures touched a low of $103.46 a barrel shortly after opening and were down $2.09, or 2%, at $103.87 at 2236 GMT, after dropping about 7% on Monday. Brent crude futures were poised to open around $3 lower, also after sliding around 7% in the previous session.
SEBI orders three-day window for investors in Ruchi Soya FPO to withdraw applications
The Securities and Exchange Board of India (SEBI) on March 28 ordered a three-day window for all investors in Ruchi Soya Industries' Rs 4,300 crore follow-on public offer (FPO) to withdraw their applications. The regulatory body's directive came amidst the “circulation of unsolicited SMSes advertising the issue”. The messages, that were allegedly sent to Patanjali Ayurved users, recommended them to invest in the offer.
“Great news for all beloved members of Patanjali parivar. A good investment opportunity in Patanjali Group. Patanjali Group company- Ruchi Soya Industries Ltd has opened the Follow-On Public offer (FPO) for retail investors. The issue closes on 28 March 2022. This is available in the price band- Rs 615-650 rupees per share , i.e discount of about 30% to market price. You can apply for shares through your bank/ broker/ ASBA/UPI in your Demat account", the unsolicited message read.
Goldman, JPMorgan strategists say equities can weather bond rout
As a global bond selloff gathers pace, equity strategists from Goldman Sachs Group Inc. to JPMorgan Chase & Co. reassured stock investors that there’s no need to fret about U.S. treasury yield curve’s inversion just yet.
“Recessions don’t typically start ahead of the curve inverting, and the lead-lag could be very substantial, as long as 2 years,” JPMorgan strategists led by Mislav Matejka wrote in a note. “Further, over this timeframe, equities tended to beat bonds handsomely,” they said, adding that the peak in equity markets historically takes place around a year after the inversion.
U.S. goods trade deficit narrows in February
The U.S. trade deficit in goods narrowed in February, but the fall reversed only a fraction of the surge to a record high in January, suggesting that trade would again weigh on economic growth in the first quarter. Though the advance indicators report from the Commerce Department on Monday showed businesses continuing to restock last month, the pace slowed from late 2021, implying that there would probably be no contribution to gross domestic product growth from inventory investment either.
The trade deficit last month fell 0.9% to $106.6 billion, the Commerce Department said on Monday. The goods trade deficit hit an all-time high of $107.6 billion in January.
FII and DII data
Foreign institutional investors (FIIs) have net sold shares worth Rs 801.41 crore, while domestic institutional investors (DIIs) have net bought shares worth Rs 1,161.70 crore on March 28, as per provisional data available on the NSE.
Dollar hits 6-year high vs yen as BOJ moves against rising bond yields
The dollar hit a six-year high versus the yen after the Bank of Japan moved to contain rising bond yields, while U.S. Treasury yields soared to new multi-year highs, highlighting a divergence between the BOJ and other major central banks.
Treasury 10-year yields vaulted above 2.5% to three-year highs , with the U.S. Federal Reserve expected to deliver a half-point interest rate rise in May as it tackles rising inflation, having kicked off its tightening cycle this month.
Stocks under F&O ban on NSE
Three stocks – Vodafone Idea, PVR, and Sun TV Network – are under the F&O ban for March 29. 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