STATE OF THE MARKETS
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 30 points, or 0.17 per cent, higher at 17,593 signaling that Dalal Street was headed for a positive start on Monday.
- Tech View: Nifty formed a bearish engulfing candle after two consecutive bullish candles on Friday, which suggests that the momentum could take a breather. The crucial support for the index is at 17,500 and below that, 17,000 is likely to act as strong support. On the upside, 17,700-17,850 will act as stiff resistance levels for the bulls.
- India VIX: The fear gauge spiked as much as 8 per cent to 19.82 level on Friday over its close at 18.39 on Thursday.
Asian stocks open mixed
Share markets idled in Asia on Monday as investors braced for a week littered with 13 central bank meetings that are certain to see borrowing costs rise across the globe and some risk of a super-sized hike in the United States. MSCI’s index of Asia-Pacific shares outside Japan was trading 0.29 per cent lower.
- Japan’s Nikkei tumbled 1.09%
- Australia’s ASX 200 gained 0.12%
- New Zealand’s DJ advanced 0.08%
- South Korea’s Kospi declined 0.62%
- China’s Shanghai jumped 0.17%
- Hong Kong’s Hang Seng fell 0.53%
Wall Street continues to slump
US stocks ended in the red on Friday, falling to two-month lows as a warning of impending global slowdown from FedEx hastened investors’ flight to safety at the conclusion of a tumultuous week.
- Dow Jones dropped 0.45% to 30,822.42
- S&P 500 plunged 0.72% to 3,873.33
- Nasdaq tumbled 0.90% at 11,448.40
Dollar off 20-year peak
The dollar held about 1 per cent below a two-decade peak versus major peers at the start of a week that saw some dozen central bank decisions, headlined by the Federal Reserve on Wednesday and followed by the Bank of Japan and Bank of England the next day.
- Dollar index retreated to 107.67
- Euro was little changed at $1.00075
- Pound was trading flat at $1.1426
- Yen was struggling at 142.905 per dollar
- Yuan exchanged hands at 7.0026 against the greenback
Oil prices climb on weak dollar
Oil prices climbed during early Asian trade on Monday as a weaker dollar and supply concerns ahead of the European Union embargo on Russian oil in December offset fears of a global recession that could dampen fuel demand.
Brent crude futures rose $1.15, or 1.3 per cent, to $92.50 a barrel by 0049 GMT after settling up 0.5 per cent on Friday. US West Texas Intermediate crude was at $86.16 a barrel, up $1.05, or 1.2 per cent. The front-month contract expires on Tuesday.
FIIs sell shares worth Rs 3,260 cr
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 3,260.05 crore, data available with NSE suggested. However, DIIs turned net setters to the tune of Rs 36.57 crore, data suggests. FPIs pumped a net Rs 12,084 crore into Indian equities during September 1-16.
India’s forex reserves drop by $2.23 bn
India’s foreign exchange (forex) reserves dropped by $2.234 billion to $550.871 billion for the week ended September 9, the lowest level in two years, the Reserve Bank of India (RBI) data showed.
This is the sixth weekly fall in the country’s forex reserves. The forex reserves had dropped by $7.941 billion during the week ended September 2. India’s forex reserves have dropped by almost $80 billion since this escalation of the Russia-Ukraine tensions into war earlier this year.
Stocks in F&O ban today
Four stocks –
, , PVR and – are under the F&O ban for Monday, September 19. 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 declined by 7 paise to close at 79.78 against the US dollar on Friday, tracking a strong dollar in overseas markets and losses in domestic equities.
10-year bonds: India 10-year bond spiked by 0.39 per cent to 7.26 after trading in 7.24 – 7.29 range on Friday.
Call rates: The overnight call money rate weighted average stood at 5.17 per cent on Wednesday, according to RBI data. It moved in a range of 3.80-5.40 per cent.