Domestic equity markets are set to open in the negative territory on Tuesday, tracking the weaker manufacturing data and fresh geopolitical worries between US and China. US stocks settled mildly lower on Monday, whereas Asian peers were in deep red during the early hours. Back home, all eyes are set on the RBI’s meeting scheduled later this week. Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 80.5 points, or 0.46 per cent, lower at 17,312.5, signaling that Dalal Street was headed for a negative start on Tuesday.
- Tech View: Nifty50 on Monday settled higher for the third straight day and formed a bullish candle on the daily chart that resembled a Hanging Man candle, suggesting a possible halt to the ongoing positive momentum. The index has also entered the overbought zone, as suggested by the 14-day RSI, but there are no clear signs of weakness as yet.
- India VIX: The fear gauge rallied more as much as 6 per cent to 17.48 level on Monday over its close at 16.55 on Friday.
Asian stocks open sharply lower
Asian stocks opened in deep red on Tuesday on fresh geopolitical worries after US House Speaker Nancy Pelosi’s potential visit to Taiwan sparked fresh tensions between China and the United States. MSCI’s index of Asia-Pacific shares outside Japan was down by 1.49 per cent.
- Japan’s Nikkei plunged 1.64%
- Australia’s ASX 200 dropped 0.59%
- New Zealand’s DJ declined 0.42%
- South Korea’s Kospi tumbled 0.74%
- China’s Shanghai tanked 2.04%
- Hong Kong’s Hang Seng fell 2.83%
Wall Street settled in red
Wall Street ended lower after a choppy session on Monday, with declines in Exxon Mobil and other energy companies weighing against gains in Boeing as investors digested the US stock market’s biggest monthly gains in two years.
- Dow Jones shed 0.14% to 32,798.40
- S&P 500 dropped 0.28% to 4,118.63
- Nasdaq declined 0.18% to 12,368.98
Dollar continues to slip down
The dollar continued its decline on Tuesday, falling to its lowest in two months against the recovering Japanese yen and losing ground on other peers, as investors continued to position for a less aggressive pace of Federal Reserve interest rate hikes.
- Dollar index pinned at 105.03
- Euro jumped higher to $1.0294
- Pound inched up to $1.2256
- Yen was recovered to 130.595 per dollar
- Yuan exchanged hands at 6.7767 against the greenback
Oil prices slipped over weak data
Oil prices edged lower on Tuesday, extending losses from the previous session, as investors worried about global oil demand following weak manufacturing data in several countries.
Brent crude futures fell 29 cents to $99.74 a barrel by 0002 GMT, with WTI crude futures down 22 cents at $93.67 a barrel. The slide came after Brent futures slumped to a session low of $99.09 a barrel, their lowest since July 15.
FIIs buy shares worth Rs 2,321 cr
Net-net, foreign portfolio investors (FPIs) turned buyers of domestic stocks to the tune of Rs 2,320.61 crore, data available with NSE suggested. However, DIIs turned net sellers to the tune of Rs 822.23 crore, data suggests.
Q1 results today
Adani Green Energy,
, , , , , , , , , , , and Shyam Metaliks and Energy are among the companies that will announce their earnings for the quarter ended June 2022.
Stocks in F&O ban today
As we are in the beginning of the new series, none of the stocks are under the F&O ban for Tuesday, August 2. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 per cent of the market-wide position limit.
MONEY MARKETS
Rupee: The rupee rose by 18 paise to close at a nearly four-week high of 79.06 against the US currency on Monday following foreign fund inflows, a decline in crude oil prices and weak American currency in global markets.
10-year bonds: India 10-year bond plunged sharply about 1.1 per cent to 7.24 after trading in 7.24 – 7.36 range on Monday.
Call rates: The overnight call money rate weighted average stood at 5.06 per cent on Thursday, according to RBI data. It moved in a range of 3.30-5.40 per cent.
