SGX Nifty down 62 points: Asian markets, dollar movement, US stocks, Q4 earnings & more

After snapping an eight-day winning streak in the previous session, domestic stock indices are likely to open lower on Thursday following a fall in US stocks overnight on account of 25 basis points rate hilke by the US Fed in its policy outcome. This is even as Asian peer markets, were trading mostly higher.  Back home, Q4 earnings of a new large cap companies will trigger stock-specific actions. Here's what you should know before the opening bell:

Nifty outlook
Nifty formed  a small bearish candle on the daily chart. The sentiment remains positive as the index has sustained above the 18,000 level, said Rupak De, Senior Technical Analyst at LKP Securities.

"Over the short term, the index is likely to remain in the range of 18,000 and 18,200. A decisive move above 18,200, may take the index towards 18,500," he said.

SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 62 points, or 0.34 per cent, lower at 18,098.50, hinting at a negative start for the domestic market on Thursday.

Asian shares rise in early trade
Asian markets woke up higher on Thursday to the realisation that although US rates have probably peaked and could soon fall, the sentiments were wary at best and gloomy at worst due to increasing fears over US banks, credit conditions, and the debt limit. The MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.43 per cent. China's Shanghai Composite gained 0.37 per cent; Hong Kong's Hang Seng surged 1.01 per cent and Korea's Kospi jumped 0.39 per cent.

Oil prices extend losses
Oil prices fell over 1 per cent on Thursday, deepening steep losses in recent days, after the US Federal Reserve increased interest rates and investors worried about a weakening global economy that could dent energy demand. Brent futures fell 76 cents, or 1.1 per cent, to $71.57 a barrel by 0002 GMT. The global benchmark on Wednesday posted its lowest settlement since December 2021. US West Texas Intermediate crude (WTI) fell $1, or 1.5 per cent, to $67.60 a barrel.

Dollar falls after Fed signals pause
The dollar slipped against most major currencies on Thursday after the US Federal Reserve opened the door to a pause in its aggressive tightening cycle, though markets were buffeted by risk aversion amid a rout in regional US bank shares. The US dollar index was 0.12 per cent lower at 101.11. In thinned Asian trade on Thursday, the British pound held at a roughly 11-month high of $1.2590. The euro was last 0.2 per cent higher at $1.1083. The risk-sensitive Australian and New Zealand dollars likewise fell in Asian trade, with the Aussie sliding 0.32% per cent to $0.6649 and the kiwi was 0.1 per cent lower at $0.62235.

Wall Street stocks settle lower

US stocks settled lower on Wednesday, reversing gains after comments by Federal Reserve Chair Jerome Powell left investors wondering what the US central bank's next move would be with interest rate hikes. Indexes initially held onto gains following the Fed's statement. It increased interest rates by a quarter of a percentage point, as expected, and signaled it could pause further hikes. The Dow Jones Industrial Average fell 270.29 points, or 0.8 per cent, to 33,414.24, the S&P 500 lost 28.83 points, or 0.70 per cent, to 4,090.75 and the Nasdaq Composite dropped 55.18 points, or 0.46 per cent, to 12,025.33.

Q4 earnings today
HDFC, Adani Enterprises, Dabur India, ABB India, Tata Power, TVS Motors, Hero Motocorp, United Breweries, Sundram Fasteners, 360 One Wam, IDFC, Blue Star, Aptus Value Housing Finance India, Firstsource Solutions, CEAT, Jammu & Kashmir Bank, Choice International, Bombay Dyeing and AGI Greenpac are among the companies that will announce their earnings for the March 2023 quarter.

Stocks in F&O ban
One only stock- Manappuram Finance- has been put under the ban by National Stock Exchange (NSE) for Thursday, May 4. 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 1,338 cr
Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 1,338 crore on Wednesday. However, domestic institutional investors (DIIs) turned net sellers of Indian equities to the tune of Rs 583.99 crore.

Rupee gains 26 paise against dollar
The rupee appreciated 26 paise to close at 81.85 against the US dollar on Thursday, supported by a weak greenback in the overseas markets and unabated foreign fund inflows. At the interbank foreign exchange market, the local unit opened at 81.99 against the US currency and finally closed at 81.85 against the greenback, registering a gain of 26 paise over its previous close.

Note: With inputs from PTI, Reuters and other agencies