STATE OF THE MARKETS
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 16 points, or 0.09 per cent, lower at 17,947.50, signaling that Dalal Street was headed for a negative start on Thursday.
- Tech View: NSE Nifty50 index succumbed to selling pressure, forming another bearish candle on the daily charts on Wednesday, deepening the worries of stock market bulls.
- India VIX: The fear gauge eased over a per cent to 14.98 level on Wednesday over its close at 15.20 on Tuesday.
Asian shares traded lower
Asian stocks opened lower on Thursday with investors disheartened by Wall Street falls on profit-taking and their focus shifting to the expected announcement this week of new stimulus in Japan. MSCI’s index of Asia-Pacific shares outside Japan was down by 0.53 per cent.
- Japan’s Nikkei plunged 0.72%
- South Korea’s Kospi tanked 0.35%
- Australia’s ASX 200 added 0.23%
- China’s Shanghai dropped 0.36%
- Hong Kong’s Hang Seng fell 1.43%
Wall Street ends lower
Wall Street benchmarks ended lower on inflation fears and supply chain concerns stemming from retailers’ earnings, with investors betting the Federal Reserve will raise interest rates sooner than expected to tame rising prices.
- Dow Jones tanked 0.58% to 35,931.05
- S&P 500 shed 0.26% to 4,688.67
- Nasdaq declined 0.33% at 15,921.57
Dollar takes breather from rally
The dollar hovered below a 16-month peak in early Asian trade on Thursday, having lost ground on the pound and yen overnight as the U.S. currency took a breather while traders considered whether its recent surge was starting to run out of steam.
- Dollar Index was pinned at 95.798
- Euro declined to $1.1316
- Pound inched up to $1.3491
- Yen traded at 114.18 per dollar
- Yuan held flat to 6.3782 against the greenback
Oil extends declines
US oil was under pressure on Thursday, adding to an overnight plunge on a Reuters report that the United States was asking major oil consumers like China and Japan to consider a coordinated release of oil reserves to lower prices.
U.S. crude was down 62 cents or 0.8% at $77.74 a barrel by 0135 GMT, having fallen 3% overnight. Brent crude fell 39 cents or 0.5% to $79.89 a barrel after falling 2.6% to the lowest close since early October on Wednesday.
FPIs sell shares worth Rs 344 cr
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 344.35 crore, data available with NSE suggested. DIIs turned net sellers to the tune of 61.14 crore, data suggests.
Two listings today
One97 Communications, the parent company of Paytm, will make its Dalal Street debut on Thursday. The largest ever IPO worth Rs 18,300 crore was open for subscription between November 8-10 in the price range of Rs 2,080-2,150 apeice. It was trading at a discount in the grey market ahead of listing.
Sapphire Foods India, the operator of QSRs like KFC, Pizza Hut and Taco Bells in India, Sri Lanka and Maldive will also debut on bourses on Thursday. The company raised 2,073.25 crore during November 9-11 selling its shares in the range of Rs 1,120-1,180. The company was commanding a mild premium ahead of its listing.
MONEY MARKETS
Rupee: The rupee pared initial losses to settle 9 paise higher at 74.28 against the US dollar on Wednesday on lower crude oil prices. A strong dollar in overseas markets and losses in equity markets capped gains in the local currency.
10-year bonds: India 10-year bond eased mildly 0.05 per cent to 6.36 after trading in 6.35 – 6.38 range on Wednesday.
Call rates: The overnight call money rate weighted average stood at 3.16 per cent on Wednesday, according to RBI data. It moved in a range of 2.00-3.40 per cent.
