STATE OF THE MARKETS
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 43.5 points, or 0.25 per cent, per cent lower at 17,272.5, signaling that Dalal Street was headed for a negative start on Friday.
- Tech View: While Nifty50 managed to add another 57.5 points on Thursday’s expiry day, the headline index failed to close above its 50-DMA. Indicating temporary weakness, Nifty formed a small bearish candle on a daily scale.
- India VIX: The fear gauge dropped more than a per cent to 19.32 level on Thursday over its close at 19.57 on Tuesday.
Asian stocks open lower
Major Asian shares opened lower Friday on continued worries about the US rate hike campaign to fight inflation, which has driven down global shares. MSCI’s index of Asia-Pacific shares outside Japan was trading 0.82 per cent lower.
- Japan’s Nikkei dropped 0.46%
- Australia’s ASX 200 shed 0.48%
- New Zealand’s DJ declined 0.33%
- South Korea’s Kospi added 0.02%
- China’s Shanghai declined 0.55%
- Hong Kong’s Hang Seng fell 0.97%
US stocks settle lower
Wall Street’s major indexes closed lower on Thursday as concerns mounted ahead of closely watched monthly nonfarm payrolls numbers due on Friday that the Federal Reserve’s aggressive interest rate stance will lead to a recession.
- Dow Jones tanked 1.15% to 29,926.94
- S&P 500 dropped 1.02% to 3,744.52
- Nasdaq tumbled 0.68% at 11,073.31
Dollar clings to gains
The dollar was strongly poised on Friday, buoyed by a chorus of hawkish Federal Reserve speakers and as investors bet solid jobs data later in the day will keep the world’s biggest central bank on its aggressive tightening path to tame inflation.
- Dollar index was firm at 112.29
- Euro was little changed to $0.9788
- Pound edged lower to $1.1150
- Yen was struggling at 145.04 per dollar
- Yuan exchanged hands at 7.1160 against the greenback
Oil prices extend gains
Oil prices rose on Friday, continuing an upward trend after OPEC+ this week agreed to tighten global supply with a deal to cut production targets by 2 million barrels per day (bpd).
The cut from the Organization of Petroleum Exporting Countries and allies including Russia, together known as OPEC+, is its largest reduction since 2020 and comes ahead of a European Union embargo on Russian oil. The decision would squeeze supplies in an already tight market, adding to inflation.
Brent crude futures rose 19 cents to $94.61 a barrel by 0002 GMT. WTI crude futures rose 24 cents to $88.69 a barrel, after earlier hitting $89.37 per barrel, the highest since September 14.
FIIs buy shares worth Rs 279 cr
Net-net, foreign portfolio investors (FPIs) turned buyers of domestic stocks to the tune of Rs 279.01 crore, data available with NSE suggested. However, DIIs turned net sellers to the tune of Rs 43.92 crore, data suggests.
Stocks in F&O ban today
No stocks are under the F&O ban for Friday, October 7. 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.
Rupee: The rupee plunged by 55 paise to close at an all-time low of 82.17 against the US currency on Thursday due to a stronger dollar in overseas markets and firm crude oil prices.
10-year bonds: India 10-year bond zoomed wildly by 1.25 per cent to 7.45 after trading in 7.44 – 7.49 range on Thursday.
Call rates: The overnight call money rate weighted average stood at 5.77 per cent on Tuesday, according to RBI data. It moved in a range of 4.10-5.85 per cent.