Domestic stock indices are likely to open on a dull note on Monday amid mixed cues from Asian markets. China’s PBOC kept benchmark lending rates unchanged at 3.65 per cent earlier today, in line with expectations. US markets will be shut for the day on account of Presidents’ Day. All eyes will be on oil prices and dollar movement, as foreign equity outflows hit Rs 30,000 crore mark in 2023, so far. Here’s what you should know before the Opening Bell:
Nifty outlook
Nifty hovered above a sloping trend line and attempted to transcend the sturdy hurdle of the 18,000 mark after two weeks of consolidation. Sameet Chavan of Angel One is optimistic “till the sacrosanct support of 17,800-17,700 is firmly withheld.” Chavan said the sustenance of 18,000 could bring the cheer back to the market, and the level of 18,200 could act as a sturdy wall going ahead.
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange quoted 26.50 points, or 0.15 per cent, higher at 17,963.50, hinting at a positive start for the domestic market on Monday.
Asian shares mixed in early trade
Asian shares were trading mixed in Monday’s trade ahead of key economic data and Fed minutes of recent policy review scheduled for later this week. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.13 per cent. Japan’s Nikkei edged 0.03 per cent lower; Australia’s ASX 200 was flat; New Zealand’s DJ tanked 1.6 per cent; Hong Kong’s Hang Seng fell 0.28 per cent; and Korea’s Kospi rose 0.15 per cent. China’s Shanghai added 0.48 per cent.
Oil prices flat amid improved supplies
Oil prices were little changed in early Asian trade on Monday, after settling down $2 a barrel on Friday, as rising supplies in the United States and forecasts of more interest rate hikes cooled optimism over China’s demand recovery. Brent crude slid 9 cents, or 0.1 per cent, to $82.91 a barrel. US West Texas Intermediate crude for March, which expires on Tuesday, was at $76.40 a barrel, up 6 cents. The more active April contract fell 9 cents to $76.46.
Dollar index edges higher
The dollar was on the front foot on Monday, supported by a strong run of economic data out of the United States that traders bet will keep the Federal Reserve on its monetary policy tightening path for longer than initially expected. The dollar index was up 0.05 per cent at 104.03, and up nearly 2 per cent for the month so far, keeping it on track for its first monthly gain since last September.
US market shut on account of public holiday
US stocks will be closed today on account of Presidents’ Day. On Friday, the Dow Jones index advanced 129.84 points, or 0.39 per cent, to 33,826.69. The S&P500 index fell lost 11.32 points, or 0.28 per cent, to 4,079.09. The Nasdaq Composite dropped 68.56 points, or 0.58 per cent, to 11,787.27.
Stocks in F&O ban
Ambuja Cements and Indiabulls Housing Finance are two stocks, which would be under F&O ban 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 the 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 625 crore
Provisional data available with NSE suggests FPIs were net sellers of domestic stocks to the tune of Rs 624.61 crore on Friday. Domestic institutional investors (DIIs) also turned sellers of equities to the tune of Rs 85.29 crore.
Rupee falls 12 paise against dollar
The rupee depreciated by 12 paise to close at 82.82 against the US currency on Friday as a stronger greenback in the overseas market and a muted trend in domestic equities weighed on investor sentiments.
Note: With inputs from PTI, Reuters and other agencies
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