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Top 10 things to know before the market opens today

Trends on SGX Nifty indicate a positive opening for the broader index in India with a gain of 55 points.

May 24, 2022 / 07:45 AM IST
Stock Market Today:

Stock Market Today:

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 55 points.

The BSE Sensex declined 38 points to 54,289, while the Nifty50 lost 200 points from the day’s high and closed at 16,215, down 51 points, forming a bearish candle on the daily charts. The failure of holding 16,400 levels indicated that the market could remain rangebound in the coming days, experts feel.

As per the pivot charts, the key support level for the Nifty is placed at 16,129, followed by 16,043. If the index moves up, the key resistance levels to watch out for are 16,358 and 16,501.

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

Close

US stocks ended higher on Monday as gains from banks and a rebound in market-leading tech shares supported a broad-based rally following Wall Street's longest streak of weekly declines since the dotcom bust more than 20 years ago.

All three major US stock indexes advanced between 1.6% and 2.0%, with the heftiest boost coming from rebounding megacap tech stocks Apple Inc and Microsoft Corp.

The Dow Jones Industrial Average rose 618.34 points, or 1.98%, to 31,880.24, the S&P 500 gained 72.39 points, or 1.86%, to 3,973.75 and the Nasdaq Composite added 180.66 points, or 1.59%, to 11,535.28.

Asian Markets

Asian shares slipped on Tuesday as relief at a rally on Wall Street was quickly soured by a slide in U.S. stock futures, while the euro held near one-month highs as odds narrowed on a July rate rise by the ECB.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.3% in hesitant trading. Japan's Nikkei fell 0.4% and Chinese blue chips eased 0.3%.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the broader index in India with a gain of 55 points. The Nifty futures were trading around 16,231 levels on the Singaporean exchange.

FDI equity inflows marginally down at $58.77 billion in 2021-22: DPIIT data

FDI equity inflows into India contracted marginally by 1 per cent to USD 58.77 billion during 2021-22, according to official data. The FDI equity inflows stood at USD 59.63 billion during 2020-21, the data from the Department for Promotion of Industry and Internal Trade (DPIIT) showed.

However, total foreign direct investment into India rose by 2 per cent to the "highest ever" USD 83.57 billion in 2021-22. Total FDI inflows include equity inflows, reinvested earnings and other capital. During 2021-22, Singapore was at the top with USD 15.87 billion worth of investments. It was followed by the US (USD 10.55 billion), Mauritius (USD 9.4 billion), the Netherlands (USD 4.62 billion), Cayman Islands (USD 3.81 billion), and the UK (USD 1.65 billion), the data showed.

SEBI allows mutual funds to launch passively-managed ELSS schemes

Mutual fund investors will soon get one more option to make tax-saving investments. The Securities and Exchange Board of India (SEBI) on May 23 allowed mutual funds to launch equity-linked savings schemes (ELSS) as passively-managed funds as well.

SEBI wants such a scheme to be based on an index that comprises the top 250 companies in terms of market-capitalisation.

However, there is one caveat. A mutual fund can have either an actively-managed ELSS scheme or a passively-managed one, but not both. So, this will allow new-age fund houses that are focusing on passive schemes, to launch a passively-managed ELSS fund.

India's economic growth may have slowed to 3.5% in Q4 FY22: ICRA

The economic growth may have slowed to 3.5 percent in fourth quarter of 2021-22 from 5.4 percent in the previous three-month period due to the impact of higher commodity prices on margins, decline in wheat yields and on higher base, ICRA Ratings said on Monday. The agency said the hiccups in the recovery of the contact-intensive services attributable to the third wave of COVID-19 in the country may have also affected the economic growth in the quarter.

Even the gross value added (GVA) at basic prices (at constant 2011-12 prices) in Q4 FY2022 seems to have eased to 2.7 percent from 4.7 percent in Q3 FY2022, it said. The National Statistical Office (NSO) will release the fourth quarter numbers of fiscal 2022 on May 31.

ICRA’s Chief Economist Aditi Nayar said Q4 was a challenging quarter, with the Omicron-fuelled third wave of COVID-19 arresting the momentum in contact-intensive services, and a pervasive pressure on margins from higher commodity prices.

Oil prices ease on concerns over recession, weaker consumption

Oil prices eased in early trade on Tuesday as concerns over a possible recession and weaker consumption outweighed an expectation of tight global supply and a pick-up in fuel demand in China after Beijing's promises of stimulus.

Brent crude futures for July slid 35 cents, or 0.3%, to $113.07 a barrel by 0122 GMT. US West Texas Intermediate (WTI) crude futures for July delivery dropped 36 cents, or 0.3%, to $109.93 a barrel. Both benchmarks declined by more than $1 earlier in the session.

Results on May 24

Grasim Industries, Adani Ports, JM Financial, Clariant Chemicals, Ugro Capital, Bank of India, eClerx Services, Ipca Laboratories, Latent View Analytics, Jyothi Labs, Metropolis Healthcare, Minda Industries, MTAR Technologies, NIIT, National Fertilizers, RailTel Corporation of India, Shree Renuka Sugars, RITES, Strides Pharma Science, and Zee Media will be in focus ahead of March quarter earnings on May 24.

FII and DII data

Foreign institutional investors (FIIs) have net sold shares worth Rs 1,951.17 crore, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 1,445.39 crore worth of shares on May 23, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Three stocks – Delta Corp, GNFC and Indiabulls Housing Finance – are under the F&O ban for May 24. 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
Sandip Das
first published: May 24, 2022 07:43 am
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