SGX Nifty sheds 110 points: Asian markets, dollar movement, FPI flows trend & more

Domestic stocks are likely to open lower on Wednesday, tracking weak signals from Wall Street. US Treasury yields rose overnight amid concerns over China's Covid situation. Most Asian markets were trading lower in morning trade and cues from Nifty futures trading at Singapore Exchange too were negative. Here's what you should know before the Opening Bell: 

Nifty outlook

Nifty on Tuesday formed a Bullish candle on the daily scale, with a long lower shadow, indicating support-based buying at lower levels. Chandan Taparia of Motilal Oswal Securities said the index needs to hold above 18,081 for up moves towards 18,250 and 18,350 levels. He said support for the index placed at 18,018 and 17,950 levels.

SGX Nifty signals a weak start 

Nifty futures on the Singapore Exchange quoted 109.50 points, or 0.60 per cent, lower at 18,175, hinting at a weak start for the domestic market on Wednesday.

Asian markets fall in early trade

Asian stocks fall in early trade on Wednesday, tracking an overnight fall in US stocks amid concerns over the Covid situation in China. Japan's Nikkei 225 declined 0.6 per cent, China's Shanghai Composite declined 0.4 per cent, Korea's Kospi declined 1.9 per cent while Taiwan's key index was down 0.95 per cent. Hong Kong's Hang Seng, meanwhile, was up 2.15 per cent.

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US stocks settle mostly lower

US stocks closed mostly lower on Tuesday after the release of US economic data at the start of a holiday-shortened week while bond yields rose after China said it would scrap its Covid quarantine rule for inbound travelers, Reuters reported. The S&P500 index lost 15.56 points, or 0.40 per cent, to 3,829.26 while the Nasdaq Composite index declined 144.64 points, or 1.38 per cent, to 10,353.23. Dow Jones Industrial Average, meanwhile, rose 37.83 points, or 0.11 per cent, to 33,241.76,

Gold prices fall, dollar rises

Gold prices eased on Wednesday pressured by an uptick in the US dollar, having risen 2 per cent in the previous session following China's decision to further ease Covid restrictions. Spot gold in international market was down 0.2 per cent to $1,809.58 per ounce. US gold futures fell 0.3 per cent to $1,818.50. The dollar index edged up 0.1 per cent, making greenback-priced gold more expensive for overseas buyers.

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Stocks in F&O ban

Shares of Indiabulls Housing Finance, PNB and Balrampur Chini Mills are banned in the F&O segment today. Derivative contracts in a security are banned when it crosses 95 per cent of the market-wide position limit (MWPL). No new positions can be created in the derivative contracts of said security. This prohibition is lifted when the open interest in the stock drops below 80 per cent of the MWPL across exchanges.

DIIs buy shares worth Rs 622 crore

Provisional data available with NSE suggests FPIs were net sellers of domestic stocks to the tune of Rs 867.65 crore on Wednesday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 621.81 crore.

Rupee falls 25 paise against dollar

The rupee declined 25 paise to close at 82.90 against the US dollar on Tuesday, as month-end dollar demand from importers and significant foreign fund outflows sapped investor appetite. Moreover, the risk-off mood among investors and firm crude oil prices in the international market weighed on the rupee, forex dealers said.

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