SGX Nifty drops 80 points: KFin Technologies listing, Asian markets, oil prices, dollar movement & more

Benchmark indices may see a weak start to Thursday’s session, tracking negative global cues. Wall Street stocks fell overnight while most Asian markets were down over 1 per cent in early trade, thanks to mixed economic data, rising Covid cases in China and geopolitical tensions. At home, volatility is also expected to remain high on account of expiry of December F&O contracts . All eyes will be on the listing of KFin Technologies. Here’s what you should know before the Opening Bell: 
 
Nifty outlook

Nifty is placed at the crucial resistance of 18,200 level, but there is no indication of any sharp negative reversal pattern unfolding at the hurdle, said Nagaraj Shetti of HDFC Securities.  One may expect further consolidation or minor weakness in the next 1-2 sessions before showing upside breakout of the said hurdle, he said adding that an immediate support is at 18,000 level.

SGX Nifty signals a weak start 

Nifty futures on the Singapore Exchange quoted 80 points, or 0.44 per cent, lower at 18,161.50, hinting at a weak start for the domestic market on Thursday.

Asian markets fall in early trade

Most Asian markets were down over 1 per cent in Thursday’s trade. Japan’s Nikkei shed 1.33 per cent, Hang Seng was down 1.5 per cent, Taiwan’s key index declined 1.25 per cent, Australia’s S&P/ASX 200 dropped 1.2 per cent. Meanwhile, China’s Shanghai Composite was down 0.66 per cent.

Oil prices ease on weak demand

Oil prices ticked down on Thursday as surging Covid-19 cases in China dimmed hopes of a recovery in fuel demand in the world’s second-biggest oil consumer. Doubts over official data prompted some countries to enact new travel rules on Chinese visitors. Brent futures for February delivery fell 42 cents, or 0.5 per cent, to $82.84 a barrel, while US crude fell 50 cents, or 0.6 per cent, to $78.46 per barrel.
 
Dollar index edges higher

The dollar index, which measures the US currency against six major rivals, rose 0.202 per cent to 104.420, Reuters reported. The greenback rallied by as much as 0.67 per cent against the yen to 134.40 in Asian trading, the most since December 20. Elsewhere, the Australian dollar rose 0.22 per cent against its US namesake to $0.674, while the New Zealand dollar strengthened by 0.65 per cent to $0.632.

US stocks settle lower

Wall Street’s main indices ended weaker on Wednesday, with the Nasdaq hitting a 2022 closing low. Investors grappled with mixed economic data, rising Covid cases in China, and geopolitical tensions heading into 2023. Dow Jones Industrial Average index fell 365.85 points, or 1.1 per cent, to 32,875.71; S&P500 index lost 46.03 points, or 1.20 per cent, at 3,783.22; and the Nasdaq Composite index dropped 139.94 points, or 1.35 per cent, to 10,213.29.

KFin Tech to make market debut today

KFin Technologies shares would make their debut on the stock exchanges tomorrow, December 29. The initial public offering (IPO) of KFin Tech got 2.59 times subscription. The initial share sale received bids for 6,14,67,520 shares against 2,37,75,215 shares on offer, BSE data showed. The quota for QIBs was subscribed 4.17 times, while the category for retail investors received 1.36 times subscription and non-institutional investors got 23 per cent subscription. 

Stocks in F&O ban

Shares of Indiabulls Housing Finance and Balrampur Chini Mills are banned in the F&O segment today. Derivative contracts in a security are banned when it crosses 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.

DIIs buy shares worth Rs 373 crore

Provisional data available with NSE suggests FPIs were net sellers of domestic stocks to the tune of Rs 872.59 crore on Wednesday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 372.87 crore.

Rupee rises 3 paise against dollar

The rupee gained 7 paise to close at 82.80 against the US dollar on Wednesday, as softening crude oil prices in the global markets boosted the local currency. Traders said the domestic unit witnessed high volatility during the session as a strong American currency overseas, persistent foreign fund outflows, and a lacklustre trend in the domestic equities dented investor sentiments.