Domestic stock indices may open higher on Tuesday, bucking weak global cues. US stocks settled lower overnight and Asian stocks were also during lower in early trade. All eyes were on the Union Budget and the US Fed's rate hike announcement scheduled on Wednesday. Investors would also keenly follow Adani Enterprises’ Rs 20,000 crore FPO that is scheduled to conclude today. Here's what you should know before the opening bell:
Nifty has showed some recovery from the lows of 17,400 levels, but struggled to sustain above the highs of 17,650-17,700 levels. A reasonable positive candle was formed on Monday’s daily chart, with long upper and lower shadows. Technically, this pattern indicates a formation of High Wave-type candle pattern, which signal high volatility in the market, an analyst said.
SGX Nifty signals a strong start
Nifty futures on the Singapore Exchange quoted 68 points, or 0.38 per cent, higher at 17,773, hinting at a positive start for the domestic market on Tuesday.
Asian shares down in early trade
Asian stocks opened lower on Tuesday ahead of the US Fed's monetary policy meeting. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.50 per cent. Japan's Nikkei dropped 0.15 per cent; Australia's ASX 200 added 0.0.7 per cent; and New Zealand's DJ was down 0.13 per cent; China's Shanghai shed 0.16 per cent; Hong Kong's Hang Seng gained 0.10 per cent; and Korea’s Kospi dropped 0.40 per cent.
Oil steady after Monday’s fall
Oil prices steadied in early Asian trade on Tuesday after falling more than 2 per cent in the previous session amid fears of further Fed rate hikes and continued Russian crude flows. Brent crude futures gained 28 cents to $85.18 per barrel while US West Texas Intermediate (WTI) crude futures were up 9 cents to $77.99.
Dollar set for 4th monthly drop
The dollar was eyeing a fourth monthly loss on Tuesday as investors reckon a peak in US interest rates could swing into view as soon as this week's Federal Reserve meeting. The US dollar index rose 0.3 per cent to 102.19 overnight. The euro rose as far as $1.0913. The Japanese yen fell 0.4 per cent overnight. Sterling and the Australian, New Zealand and Canadian dollars also made overnight losses but are set for monthly gains.
US stocks settled lower
Major US stock indices sank on Monday, weighed down by declines in technology and other megacap shares, as investors looked toward a major week of events including central bank meetings and a slew of earnings reports. The Dow Jones Industrial Average fell 260.99 points, or 0.77 per cent, to 33,717.09, the S&P 500 lost 52.79 points, or 1.30 per cent, to 4,017.77 and the Nasdaq Composite dropped 227.90 points, or 1.96 per cent, to 11,393.81.
Q3 earnings today
Sun Pharmaceuticals, Power Grid Corporation, Indian Oil Corporation, Godrej Consumer Products, Jindal Steel & Power, Cholamandalam Investment & Finance Company, UPL, Shriram Finance, Procter & Gamble Hygiene & Healthcare, Indian Hotels Company, ACC, Star Health and Allied Insurance Company, Max Finance Services, Vodafone Idea, Blue Star, City Union Bank and KPIT Tech are among the companies that will announce their results for the December 2022 quarter.
Stocks in F&O ban
Ambuja Cements has been put under F&O ban by NSE for Tuesday, January 31. 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 sell shares worth Rs 6,793 crore
Provisional data available with NSE suggests FPIs turned net sellers of domestic stocks to the tune of Rs 6,792.80 crore on Monday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 5,512.63 crore.
Rupee jumps 7 paise against dollar
The rupee rose 7 paise to close at 81.52 against the US currency in a restricted trade on Monday, supported by a weak greenback in the overseas markets and a decline in crude oil prices. At the interbank foreign exchange market, the local unit opened lower at 81.69 and touched a low of 81.72 against the US dollar in line with losses in the equity markets.
Note: With inputs from PTI, Reuters and other agencies
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