Domestic stocks are likely to see a positive start to Thursday’s trade after the Fed minutes of a recent policy review suggested most policymakers were seeing slower rate hikes ahead. That said, volatility may rise as the session progresses, thanks to the expiry of November F&O contracts. Asian markets were trading mostly higher in early trade. Here’s what you should know before the Opening Bell:
Nifty outlook
On the weekly charts, the Nifty uptrend looks intact and the prevailing present consolidation or minor weakness in the market should be considered as a ‘buy on dips’ opportunity, said Nagaraj Shetti of HDFC Securities. As long as the support of 18,100-18,000 levels is protected, one may expect consolidation movement to continue, he said.
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange quoted 95 points, or 0.52 per cent, higher at 18,472, hinting at a positive start for the domestic market on Thursday.
Asian markets gains in early trade
Asian markets rose in Thursday’s trade, as US Federal Reserve’s November meeting minutes indicated slower Fed rate hikes ahead. Japan’s Nikkei climbed 1.31 per cent, Hong Kong’s Hang Seng rose 1.03 per cent, Korea’s Kospi added 0.6 per cent while China’s Shanghai Composite index was up 0.30 per cent. Taiwan’s key index gained 0.48 per cent.
US stocks settle higher
US stocks ended higher on Wednesday after the Federal Reserve’s November meeting minutes suggest the pace of interest rate hikes may slow soon. A ‘substantial majority’ of policymakers agreed it would ‘likely soon be appropriate’ to slow the pace of interest rate hikes, the minutes of November 1-2 meeting showed. Dow Jones index rose 95.96 points, or 0.28 per cent, to 34,194.06. S&P500 index gained 23.68 points, or 0.59 per cent, to 4,027.26. Nasdaq Composite index jumped 110.91 points, or 0.99 per cent, to 11,285.32.
Oil falls on fears of supply disruptions
Oil prices fell on Thursday, extending losses from the previous session, as fears of supply disruption eased on news that the Group of Seven (G7) nations were considering a high price cap on Russian oil. A greater-than-expected build-up in US gasoline inventories added to downward pressure. Brent crude futures had slid 43 cents, or 0.5 per cent, to $84.98 a barrel while US WTI crude futures dropped 35 cents, or 0.5 per cent, to $77.59 a barrel.
Corporate actions today
Thursday will see six stocks namely Bharat Forge, JM Financial, Power Finance Corporation, Cupid, Diamines & Chemicals and Polyplex Corporation going ex-dividend. Housing Development & Infrastructure wll disclose its quarterly results today. The board of SRG Housing Finance will consider a proposal of issuing warrants today.
Stocks in F&O ban
Shares of Punjab National Bank are banned in the F&O segment today. Derivative contracts in a security are banned when they cross 95 per cent of the market-wide position limit (MWPL). No new positions can be created in the derivative contracts of said security. This prohibition is lifted when the open interest in the stock drops below 80 per cent of the MWPL across exchanges.
FPIs sell shares worth Rs 790 crore
Provisional data available with NSE suggests FPIs were net sellers of domestic stocks to the tune of Rs 789.86 crore on Wednesday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 413.75 crore.
Rupee falls 26 paise against dollar
The rupee depreciated 26 paise to settle at 81.93 against the dollar on Wednesday, thanks to greenback demand by banks on behalf of importers. The persistent foreign capital outflows also hurt sentiment, forex traders said. Rupee hit an intraday high of 81.74 and a low of 81.93 during the session.
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