The market is expected to open in the red as trends on the SGX Nifty indicate a negative opening for the broader index with a loss of 92 points.
The BSE Sensex declined 566 points to 59,610, while the Nifty50 fell 150 points to 17,808 and formed small bodied bearish candle on the daily charts.
As per the pivot charts, the key support level for the Nifty is placed at 17,758, followed by 17,708. If the index moves up, the key resistance levels to watch out for are 17,879 and 17,951.
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's main indices fell on Wednesday, with steep declines in tech and other growth stocks, after minutes from the Federal Reserve's March meeting sharpened investors' focus on the US central bank's plans to fight inflation. The tech-heavy Nasdaq logged a decline of over 2 percent for a second straight day.
The Dow Jones Industrial Average fell 144.67 points, or 0.42 percent, to 34,496.51, the S&P 500 lost 43.97 points, or 0.97 percent, to 4,481.15 and the Nasdaq Composite dropped 315.35 points, or 2.22 percent, to 13,888.82.
Asia-Pacific markets dropped on Thursday following two days of declines on Wall Street. The Nikkei 225 in Japan fell 1.87 percent in early trade, while the Topix slid 1.98 percent. Australia’s S&P/ASX 200 was down 0.58 percent. In Korea, the Kospi slipped 0.93 percent, while the Kosdaq declined 1.02 percent.
Trends on the SGX Nifty indicate a negative opening for the broader index with a loss of 92 points. The Nifty futures were trading around 17,775 levels on the Singaporean exchange.
Minutes of Fed's March meeting seen detailing a speedy balance sheet rundown
US Federal Reserve officials on Wednesday will release more details on what's evolving as a three-year plan to trim several trillion dollars from the stash of assets purchased to stabilize financial markets through the coronavirus pandemic, its next step in the move to tighten credit and lower inflation.
The reductions, which officials say could begin as soon as next month, were debated at the Fed's March meeting, and minutes of that session released at 1800 GMT may indicate just how fast and how far policymakers will proceed in getting rid of the $4.6 trillion in US Treasuries and mortgage-backed securities accumulated since March 2020.
The Fed "will continue tightening monetary policy methodically through a series of interest rate increases and by starting to reduce the balance sheet at a rapid pace as soon as our May meeting," Fed Governor and Vice-Chair nominee Lael Brainard said on Tuesday.
Referring to the 2017-2019 period when the Fed took a year to reach a pace of $50 billion in monthly reductions of its holdings, Brainard said: "I expect the balance sheet to shrink considerably more rapidly" this time.
Oil slumps to three-week low
Oil futures fell sharply on Wednesday after large consuming nations said they would release oil from reserves to counter tightening supply and hawkish minutes from the US central bank that bolstered the dollar.
Selling accelerated into the close, leaving both the Brent and West Texas Intermediate benchmarks at their lowest closing levels since March 16. Brent crude futures settled down $5.57, or 5.2 percent, at $101.07 a barrel, while US crude fell $5.73, or 5.6 percent, to $96.23 a barrel.
Zee's biggest shareholder Invesco to sell 7.8% equity through block deal today
Invesco Developing Market Funds, which was until recently locked in a boardroom battle with Zee Entertainment Enterprises Ltd, has decided to reduce its stake in the latter via a block deal on April 7.
Invesco, which is currently Zee's biggest shareholder and holds a total of 17.88 percent stake along with OFI Global China Fund LLC, will offload up to 7.8 percent of the equity. It will by selling 7.4 crore shares, which is worth around Rs 2,200 crore of the stock.
Bandhan Group-led consortium to acquire IDFC AMC for Rs 4,500 crore
Infrastructure Development Finance Company (IDFC Limited) and a consortium comprising Bandhan Financial Holdings Limited (BFHL), GIC, and ChrysCapital (“CC”) have entered into a definitive agreement to acquire IDFC Asset Management Company Limited (IDFC AMC) and IDFC AMC Trustee Company Limited from IDFC Limited, for a consideration of Rs 4,500 crore subject to receipt of necessary regulatory approvals and customary closing conditions.
Moneycontrol had earlier reported that a consortium led by Kolkata-based Bandhan Group along with Singapore's GIC and private equity firm ChrysCapital have likely emerged as the frontrunner in the IDFC Mutual Fund mega sale.
The Bandhan consortium was reportedly selected through a highly competitive divestment process that saw the participation of strategic players and financial investors. A statement released by the consortium read: “This is a highly tracked acquisition and will be the largest deal in the Indian asset management industry to date.”
Government defers proposal to merge BSNL, MTNL due to financial reasons
The government has deferred the merger of state-run telecom firms BSNL and MTNL due to financial reasons, Parliament was informed on Wednesday. Minister of State for Communications Devusinh Chauhan in a written reply to the Rajya Sabha said that a proposal for the merger of Bharat Broadband Network Limited (BBNL) and Bharat Sanchar Nigam Limited (BSNL) is under examination.
"Government has approved the revival plan of Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) on October 23, 2019, which inter-alia includes in-principle approval for the merger of MTNL and BSNL. Due to financial reasons including high debt of MTNL, the merger of MTNL with BSNL is deferred,” Chauhan said.
RBI Policy | Repo rate seen unchanged on April 8, but rate lift-off not far as inflation noose tightens
The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) may leave the repo rate unchanged and retain its accommodative stance for the 11th consecutive meeting on April 8, but an interest rate lift-off has edged closer than ever in the pandemic era.
A Moneycontrol survey of 12 economists showed respondents were unanimous in their belief that the central bank's rate-setting panel will retain the repo rate at its record-low level of 4 percent later this week. However, elevated inflation levels will force the central bank to acknowledge the risks from rising prices and raise its inflation forecast significantly.
SEBI comes out with new guidelines for KYC Registration Agencies
Capital markets regulator SEBI on Wednesday issued fresh guidelines for KYC Registration Agencies (KRAs) whereby such agencies will have to independently validate KYC records of all clients from July 1. The move comes after SEBI, in January, notified new norms to make KRAs responsible for carrying out independent validation of the KYC records uploaded onto their system by Registered Intermediaries (RIs).
Under the notified rules, such agencies will have to maintain an audit trail of the upload/modification/download with respect to KYC records of clients.
FII and DII data
Foreign institutional investors (FIIs) have net sold shares worth Rs 2,279.97 crore, while domestic institutional investors (DIIs) have net bought shares worth Rs 622.92 crore on April 6, as per provisional data available on the NSE.
Russia-Ukraine war to slow 2022 growth in developing Asia - ADB
Growth in developing Asia will likely be slower this year than previously thought, the Asian Development Bank said on Wednesday, as the war in Ukraine is expected to derail economic recovery in the region still reeling from the COVID-19 pandemic.
The bloc's combined economy, which includes China and India, is projected to expand 5.2 percent this year, the ADB said in a report, down slightly from 5.3 percent forecast in December, and sharply lower than the previous year's 6.9 percent growth. For 2023, the region is forecast to grow 5.3 percent.With inputs from Reuters & other agencies