After a steep fall in the previous session, the Indian equity market was set for a gap-up start on Thursday, tracking strong global sentiments. US stocks rallied sharply after the Fed downplayed the aggression in rate hikes, whereas Asian stocks were trading with strong gains. Back home, LIC’s mega IPO will be keenly watched on its second day of subscription. Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 150 points, or 0.90 per cent, higher at 16,839, signaling that Dalal Street was headed for a positive start on Thursday.
- Tech View: Nifty50 on Wednesday slipped below its 50-day simple moving average (SMA) at open after falling below the 200-day simple SMA the previous session. The index breached strong support, which was present at the lower end of the 16,700-17,300 range and ended up forming a long bearish candle on the daily chart.
- India VIX: The fear gauge spiked as much as 8 per cent to 21.88 level on Wednesday over its close at 20.28 on Monday.
Asian shares trade higher
Major Asian stocks started Thursday with a healthy advance after the Federal Reserve lifted interest rates but played down any chance of a huge 75 basis-point lift in the near future. MSCI’s index of Asia-Pacific shares outside Japan was up by 1.08 per cent.
- Japan’s Nikkei dropped 0.06%
- Australia’s ASX 200 gained 0.56%
- South Korea’s Kospi jumped 0.08%
- New Zealand’s DJ surged 0.61%
- China’s Shanghai added 0.37%
- Hong Kong’s Hang Seng rallied 1.39%
US stocks end higher
Major US indices closed sharply higher on Wednesday after the Federal Reserve raised its benchmark overnight interest rate by half a percentage point and said it would begin trimming its bond holdings next month as a further step in the battle to lower inflation.
- Dow Jones gained 2.81% to 34,061.06
- S&P 500 jumped 2.99% to 4,300.17
- Nasdaq rallied 3.19% to 12,964.86
Dollar recoils over Fed’s hawkish bets
The dollar was nursing its sharpest fall in more than a month on Thursday after the US Federal Reserve raised its benchmark interest rate by 50 basis points but poured cold water on the idea that even larger rises could lie ahead.
- Dollar Index hit a new 20 year high of 102.450
- Euro was rose at $1.0606
- Pound jumped to $1.2605
- Yen struggled at 129.26 per dollar
- Yuan exchanged hands at 6.6084 against the greenback
Oil prices extend gains
Oil prices edged higher at the start of Asian trade on Thursday, extending gains from the previous session, after the European Union proposed new sanctions against Russia that included an embargo on crude oil in six months.
Brent crude futures rose 22 cents to $110.36 a barrel. WTI crude futures rose 15 cents to $107.96 a barrel. Both benchmarks rose over $5 a barrel on Wednesday.
FIIs sell shares worth Rs 3,288 cr
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 3,288.18 crore, data available with NSE suggested. DIIs turned net buyers to the tune of Rs 1338 crore, data suggests.
Q4 earnings today
Adani Power, Dabur India,
, , Indus Towers, ABB India, Voltas, MRF Cholamandalam Investment & Finance Company, Forgings, TVS Motor company, DCM Shriram, Aavas Financiers, Blue Dart Express and Happiest Minds are among the companies which will announce their earnings today.
Stocks in F&O ban today
Since it is the beginning of the May series contracts, none of the stocks are under the F&O ban for Thursday. 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.
Fed hikes rate by 50 bps
The Federal Reserve delivered the biggest hike in interest rates since 2000 and announced it would start shrinking its massive balance sheet next month, deploying the most aggressive tightening of monetary policy in decades to combat soaring inflation.
Rupee: The rupee appreciated by 8 paise to settle at 76.40 against the US dollar on Wednesday following RBI’s surprise rate hike ahead of the US Federal Reserve’s policy decision.
10-year bonds: India 10-year bond spiked wildly about 3.64 per cent to 7.37 after trading in 7.12 – 7.41 range on Wednesday.
Call rates: The overnight call money rate weighted average stood at 3.64 per cent on Friday, according to RBI data. It moved in a range of 2.30-3.95 per cent.