SGX Nifty down 48 points: Asian stocks, crude prices, dollar movement & more

Domestic equity indices are likely to open lower on Thursday despite data showing a stronger-than-expected 7.2 per cent growth in FY23 GDP. US stock settled lower overnight while Asian markets were trading sideways in the early session. Here's what you should know before the Opening Bell:

Nifty outlook

Ashwin Ramani, Derivatives & Technical Analyst at SAMCO Securities said that the resistance at 18,600 is gaining significance today’s trading session with option data indicating long unwinding at the same strike. A decisive close above this level will drive Nifty uptrend. A significant call writing additions were seen at the 18,500 strike, due to which the support for Nifty now shifts to 18,400 levels, he said.

SGX Nifty signals a weak start
Nifty futures on the Singapore Exchange traded 47.50 points, or 0.25 per cent, lower at 18,616.50, hinting at a negative start for the domestic market on Thursday.

Asian stocks mixed in early trade
Asian shares opened mixed on Thursday as a batch of purchasing managers index reports from across the Asia-Pacific region will offer local markets direction, with investors likely to be in a cautious mood following Wednesday's global market moves. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.37 per cent. Japan's Nikkei gained 0.30 per cent; Australia's ASX 200 jumped 0.33 per cent; New Zealand's DJ surged 0.84 per cent; China's Shanghai shed 0.05 per cent; Hong Kong's Hang Seng gained 0.23 per cent and South Korea's Kospi dropped 0.38 per cent.

Oil prices fall for 3^rd day
Oil prices dipped in early trade on Thursday for the third straight session after data showed an unexpected, large build in US crude stocks last week, triggering fears of an oversupply amid signs of weaker Chinese demand, too. Brent crude futures for August delivery fell 40 cents, or 0.6 per cent to $72.20 a barrel by 0023 GMT, while US West Texas Intermediate crude (WTI) eased 39 cents, or 0.6 per cent, to $67.70 a barrel.

Dollar index at 104 level
The US dollar dropped on Thursday, off from a 10-week high after a deal over the US debt ceiling lifted risk sentiment. The dollar index dropped 0.1 per cent to 104.17. Meanwhile, the euro was flat, almost unchanged at $1.0689, while sterling was last trading at $1.2437, falling 0.03 per cent on the day. The yen gained 0.04 per cent to 139.41 per dollar.

Wall Street stocks settle lower
US stocks closed lower on Wednesday, as a deal to raise the federal debt ceiling headed for a crucial vote in Congress. An unexpectedly strong labor market data also rattled investors, who feared the Federal Reserve might hike interest rates again in June. The Dow Jones Industrial Average fell 134.51 points, or 0.41 per cent, to 32,908.27; the S&P 500 lost 25.69 points, or 0.61 per cent, at 4,179.83; and the Nasdaq Composite dropped 82.14 points, or 0.63 per cent, to 12,935.29.

GDP growth at 6.1% in Q4
India's gross domestic product (GDP) for the January-March quarter of the previous financial year accelerated to 6.1 per cent, the data shared by the Ministry of Statistics and Programme Implementation showed on Wednesday, May 31. The Indian economy grew at 7.2 per cent in the entire FY23. The economy grew at 9.1 per cent in FY22.

Stocks in F&O ban
Since it is the beginning of the new series, no stock has been put under the ban by National Stock Exchange (NSE) for Thursday, June 1. 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.

FPIs buy shares worth Rs 3,406 crore
Provisional data available with NSE suggest that FPIs were net buyers of domestic stocks to the tune of Rs 3,405.90 crore on Wednesday, Domestic institutional investors (DIIs) turned net sellers of Indian equities to the tune of Rs 2,528.52 crore.
 
Rupee falls 8 paise against dollar
Falling for the third straight session, the rupee declined by 8 paise to 82.75 against the US dollar on Wednesday, as intense selling pressure in domestic equities and a strong greenback overseas dented the sentiment. Forex traders said the continued inflow of foreign capital and a steep decline in crude price, however, restricted the fall in the domestic unit.

Note: With inputs from PTI, Reuters and other agencies