SGX Nifty up 110 points: Asian markets, Budget, crude movement, Q3 earnings, FPI flows & more

Domestic equity indices are set to open higher on Wednesday, ahead of the Union Budget, which will be tabled today by the Finance Minister Nirmala Sitharaman. US stocks settled higher in the overnight trade, whereas Asian peers were also up in the early trade. Traders will also be awaiting the US Fed's rate hike announcement later in the evening. Here's what you should know before the opening bell:

Nifty outlook
In the case of Nifty, a gap up opening on January 31 was followed by a steep selling pressure in the beginning of the session. Nevertheless, the index managed to recover as the day progressed & closed in the green, said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas.

"With this bounce, the index is heading towards the level of 17,800, which holds the key for further course of action from a short-term perspective. If the index manages to surpass 17,800 then it will be poised for a larger up move. Till then a consolidation in the range of 17,400-17,800 is possible," it said.

SGX Nifty signals a strong start
Nifty futures on the Singapore Exchange quoted 110 points, or 0.62 per cent up at 17,862, hinting at a positive start for the domestic market on Wednesday.

Sitharaman to present Union Budget
The Finance Minister of India Nirmala Sitharaman will announce its union budget for the upcoming financial year 2023-24. Sitharaman is likely to give the booster dose of growth for the domestic economy, which is struggle with muted demand and high inflation rate after the covid-19 jitters. Other than this, rationalization of the taxation policy will also be keenly tracked by the industry.

Asian shares rise in early trade
Asian stocks opened higher on Wednesday tracking the rise in US stocks ahead of the Fed's monetary policy meeting outcome later in the day. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.48 per cent. Japan's Nikkei gained 0.28 per cent; Australia's ASX 200 added 0.44 per cent; New Zealand's DJ was jumped 0.94 per cent; China's Shanghai rose 0.36 per cent; Hong Kong's Hang Seng inched up 0.27 per cent; and Seoul's Kospi surged 0.72 per cent.

Oil prices rise
Oil prices climbed on Wednesday underpinned by a weaker dollar, which fell on signs of slowing inflation in the United States, easing fears that the world's largest oil user may face a recession because of further interest rate hikes. Brent crude futures gained 20 cents, or 0.2 per cent, to $85.66 a barrel at 0128 GMT, while US West Texas Intermediate (WTI) crude futures rose 34 cents, or 0.4 per cent, to $79.21 a barrel.

US dollar broadly flat
The dollar was broadly flat against major currencies on Wednesday after easing in the previous session following US data that showed moderating wage pressure, with investors keenly awaiting the conclusion of a Federal Reserve policy meeting. The dollar index fell 0.029 per cent to 102.06. The euro was down 0.03 per cent to $1.0859, while sterling was last trading at $1.231, down 0.08 per cent on the day. The Japanese yen strengthened 0.10 per cent versus the greenback at 129.98 per dollar.

US stocks ended higher
A gauge of global stocks advanced on Tuesday as it closed out a strong month while US Treasury yields fell as investors assessed economic data and earnings reports ahead of a run of central bank policy announcements. On Wall Street, US stocks rallied and closed higher. The Dow Jones Industrial Average rose 368.95 points, or 1.09 per cent, to 34,086.04 , the S&P 500 gained 58.83 points, or 1.46 per cent, to 4,076.6 , and the Nasdaq Composite added 190.74 points, or 1.67 per cent, to 11,584.55.

Q3 earnings today
Britannia Industries, Ashok Leyland, Jubilant Foodworks, Tata Chemicals, Timken India, Sundaram Fastners, Whirlpool of India, Gillette India, Ajanta Pharma, IDFC, Redington India, Hindustan Copper, Lakshmi Machine Works, Alembic Pharma, Raymond, UTI Asset Management Company, SIS, Prism Johnson are among the companies that will announce their results for the December 2022 quarter.

Stocks in F&O ban
Only one stock- Ambuja Cement- has been put under F&O ban by National Stock Exchange (NSE) for Wednesday, February 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 sell shares worth Rs 5,440 crore
Provisional data available with NSE suggests FPIs turned net sellers of domestic stocks to the tune of Rs 5,439.64 crore on Tuesday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 4,506.31 crore.

Rupee jumps 7 paise
The rupee depreciated by 36 paise to close at a three-week low of 81.88 against the US dollar on Tuesday after the Economic Survey 2022-23 said the domestic unit may remain under pressure on account of plateauing of exports and subsequent widening of the current account deficit. Forex traders said significant foreign fund outflows and a muted trend in domestic equities also dented investor sentiment ahead of the Union budget and Federal Reserve Policy announcement on February 1.

Note: With inputs from PTI, Reuters and other agencies

 

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