SGX Nifty rises 53 points: Fed minutes, mixed Asian markets, recovery in oil prices, FPI outflows & more

Domestic stock indices are likely to open on a positive note on Thursday after four straight days of fall, even as Fed minutes of the recent policy review suggested the US policy makers were keen on curbing inflation through rake hikes. Asian markets were trading mixed while oil prices halted a six-day fall. Here’s what you should know before the Opening Bell:

Nifty outlook

Nifty made lower high-low formation on daily and weekly charts. The momentum indicator RSI is on the verge of a breakdown and is likely to enter weak zone. The view remains bearish as long as the index stays below the 18,000 mark, said Rupak De of LKP Securities. This analyst sees Nifty sliding towards 17,400 and 17,200 levels.

SGX Nifty signals a positive start

Nifty futures on the Singapore Exchange traded 52.50 points, or 0.30 per cent, higher at 17,688.50, hinting at a positive start for the domestic market on Thursday.

Asian shares mixed in early trade

Asian shares mixed on Thursday morning post the release of minutes of recent Fed policy review that suggested curbing inflation will be the key factor for US policy makers in determining the pace of interest rate hikes going ahead. MSCI's broadest index of Asia-Pacific shares outside Japan tanked up 0.32 per cent. Australia's ASX 200 declined 0.33 per cent; New Zealand's DJ rose 0.35 per cent; Hong Kong's Hang Seng retreated 0.17 per cent; and Korea’s Kospi rose 1.10 per cent. China's Shanghai edged 0.09 per cent lower. Japan markets were closed for the day on account of Emperor's Birthday.

Oil prices halt 6-day losing run

Oil prices rose slightly in thin Asian trade on Thursday, pausing from a six-day losing streak fed by mounting concerns that more aggressive interest rate increases by central banks could pressure economic growth and fuel demand. Brent crude futures rose 2 cents to $80.62 per barrel. West Texas Intermediate crude futures (WTI) rose 9 cents, or 0.1 per cent, to $74.04 a barrel.

Fed minutes show openness to higher rates

Minutes from the Federal Reserve's January 31-Febeuary  1 meeting suggested that nearly all US Federal Reserve policymakers rallied behind a decision to further slow the pace of interest rate hikes at the US central bank's last policy meeting, but also indicated that curbing unacceptably high inflation would be the "key factor" in how much further rates need to rise.

US indices fall for 4th day

US stocks extended losing un to the fourth sessions on Wednesday as investors turned cautious after guidance on rate policy from the US central bank showing few surprises. The Dow fell 84.5 points, or 0.26 per cent, to 33,045.09; the S&P500 index declined 6.29 points, or 0.16 per cent, to 3,991.05 and the Nasdaq advance d14.77 points, or 0.13 per cent, to 11,507.07.

Stocks in F&O ban

Vodafone Idea would be the only stock under F&O ban today. Derivative contracts in a security are banned when they cross 95 per cent of the market-wide position limit (MWPL). No new positions can be created in the derivative contracts of the said security. This prohibition is lifted when the open interest in the stock drops below 80 per cent of the MWPL across exchanges.

FPIs sell shares worth Rs 580 crore

Provisional data available with NSE suggests FPIs were net sellers of domestic stocks to the tune of Rs 579.82 crore on Wednesday. Domestic institutional investors (DIIs) turned buyers of equities to the tune of Rs 371.56 crore.

Rupee falls 10 paise against dollar

The rupee depreciated by 10 paise to settle at 82.89 (provisional) against the US dollar on Wednesday, as intense selling pressure in domestic equities and a strong greenback overseas dented the sentiment. However, a sharp decline in crude oil prices in the international market restricted the rupee's fall, forex traders said.

Note: With inputs from PTI, Reuters and other agencies
 
 

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