SGX Nifty sheds 18 pts. Fed outcome, Q2 results, Fusion Micro IPO & more

Domestic stocks may open on a cautious note on Wednesday, ahead of the outcome of two-day Fed policy review later in the day. All eyes would be on Fusion Micro Finance IPO which would open for subscription today. Here's what you should know before the Opening Bell:  

Nifty outlook

Nifty50 had on Tuesday made a gap-up start and took out its previous swing high. But the index witnessed profit booking later at higher level, thus ending up forming an indecisive candle on the daily chart. Analysts said the daily RSI is in bullish crossover and the trend remains strong as long as the index remains above 18,000. The index may face resistance at 18,300, they said. 

SGX Nifty signals a muted start 

Nifty futures on the Singapore Exchange quoted 18 points, or 0.10 per cent, lower at 18.237, hinting at a muted start for the domestic market on Wednesday. 

Asian markets mixed in early trade

Asian markets were largely mixed on Wednesday morning ahead of the outcome of the two-day US Federal Reserve policy review later in the day. China's Shanghai Composite edged 0.13 per cent higher at 2,973.76. Korea's Kospi gained 0.23 per cent to 2,340.65. Hong Kong's Hang Seng fell 0.28 per cent to 15,413.50. Nikkei was flat at 27,678.50. Australia's S&P ASX200 index rose 0.28 per cent to 6,996.70. 

US stocks fall in overnight trade

US stocks settled lower for a second straight session on Tuesday after data suggesting that the labour market remained on solid ground dashed hopes of Federal Reserve reducing the size of its interest rate hikes. Dow  Jones fell 0.24 per cent to 32,653.20. S&P500 index declined 0.41 per cent to 3,856.10 an d Nasdaq Composite dropped 0.89 per cent to 10,890.84. 

Q2 results today

Adani Transmission, Procter & Gamble Hygiene & Healthcare, Dalmia Bharat, Mahindra & Mahindra Financial Services, Relaxo Footwears, Grindwell Norton, Kajaria Ceramics, EIH and Redington are among dozen of companies that are scheduled to report their September quarter results later in the day. 

Corporate actions today

A total of two stocks Happiest Minds Technologies and Atul Limited will go ex-dividend today. The board of Triveni Turbine will mull a proposal of share buyback today. CL Educate board will consider a proposal of bonus issue. Also, the board of Anka India will consider a proposal of preferential issue. 

Stock in F&O ban

Shares of Punjab National Bank are banned in the F&O segment today. Derivative contracts in a security is 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. 

Fusion Micro IPO to kick off today

Ahead of its IPO, Fusion Micro Finance on Tuesday allotted 89,99,943 equity shares at Rs 368, aggregating to Rs 331.20 crore to 17 anchor investors. The IPO comprises fresh issuance of equity shares worth Rs 600 crore and an offer of sale of 1,36,95,466 equity shares by promoters and existing shareholders. It will conclude on November 4.

All eyes on Fed outcome today

BofA Securities in a note said it expects the US Fed to announce a 75 basis points rate hike. It expects the Fed Chair Jerome Powell to open the door to a slower pace of hikes beginning in December. 

"Yet we expect the Fed to remain data dependent and emphasize cumulative policy rate tightening over any step down in pace. The November decision should be supportive for the USD in the near term but is unlikely to have much impact on rates," it said. 

FPIs buy shares worth Rs 2,610 crore

Provisional data available with NSE suggests FPIs were net buyers of domestic stocks to the tune of Rs 2,609.94 crore. Domestic institutional investors (DIIs), on the other hand, were sellers of equities to the tune of Rs 730.14 crore.

Dollar index falls ahead of Fed meet

The US dollar slipped from near a one-week peak versus major peers on Wednesday, with traders on tenterhooks before a looming Federal Reserve rate decision that should also give clues on the future policy path. The dollar index - which gauges the greenback against a basket of six counterparts that includes the yen, euro and sterling - eased 0.14 per cent to 111.33, but still not far below Tuesday's high of 111.78, which was the strongest level since October 25, a Reuters report suggested.

Rupee gains 22 paise against dollar

The domestic currency climbed 22 paise to settle at 82.59 against the dollar on Tuesday amid persistent foreign fund inflows and a weakening of greenback overseas. The local currency opened at 82.74 and witnessed a high of 82.59 and a low of 82.79 during the day. It eventually settled the day at 82.59, registering a rise of 22 paise over its previous close of 82.81.

Also read: US Fed & Dalal Street: How will policy decision impact your stocks?

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