D-St braces for weak opening on negative GIFT Nifty cues

On Wednesday, the Nifty declined 0.8% to 22,603, while India VIX rose 2.1%, amid weak global cues and the RBI’s unexpected shift towards a tightening stance. Analysts say Indian equities are likely to remain cautious as the RBI's shift towards an interest rate tightening cycle, while the rupee weakened close to a record low.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a negative start

GIFT Nifty on the NSE IX traded lower by 34 points, or 0.15 per cent, at 22,558, signaling that Dalal Street was headed for a negative start on Thursday.


Tech View: The next few days will be important, as a decisive fall below 22,600 might reignite bearishness in the market. On the lower end, a break below 22,600 could drag the index towards 22,200 levels. On the other hand, a sustained rise above 22,750 might bring some bullishness back into the market.

Asian shares subdued

Asian shares slipped on Thursday as strains in sovereign bond markets were aggravated by reports some major tech companies were seeking to raise billions in debt in direct competition for limited funding.

• S&P 500 futures were little changed as of 9:45 a.m. Tokyo time
• Hang Seng futures fell 0.6%
• Nikkei 225 futures (OSE) fell 1.3%
• Japan’s Topix fell 1.4%
• Australia’s S&P/ASX 200 fell 0.4%
• Euro Stoxx 50 futures rose 0.1%

US stocks fall

Wall Street closed lower on Wednesday, as long-dated US Treasury yields resumed their climb, reviving fears about inflation and mounting debt the day after the S&P 500 and the Nasdaq hit record closing highs.

All three major US stock indexes were modestly lower, with the S&P 500 and the Dow snapping four-day winning streaks. The Nasdaq notched its first down day in six.

Oil rises

Oil prices rose on Thursday on persistent worries about supply from the key Middle East producing region amid an increase in attacks on shipping in the Gulf and the Strait of Hormuz.

Gold edges higher

Gold prices edged higher on Thursday after touching a two-month low in the previous session, while markets awaited further clarity on the US Federal Reserve's interest rate path.

Dollar holds near 18-month high

The dollar held near its strongest level in a year-and-a-half in subdued trading at the start of the Asian session on Thursday, after hawkish minutes from the Federal Open Market Committee signaled policymakers at the US central bank viewed inflation as the biggest risk to their outlook.

India VIX: India VIX, which is a measure of the fear in the markets, rose 2% to settle at 13.88 levels.

Read more: Ahead of Market: 10 things that will decide stock market action on Thursday

Stocks in F&O ban today

1) SAIL

2) Bandhan Bank

3) Ambuja Cement

4) LIC

Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

Read more: RBI MPC rate hike: Experts decode what the policy decision means for mutual fund investors

FII/DII action

Foreign portfolio investors net sold shares worth Rs 6,121 crore on Wednesday. DIIs, meanwhile, were net buyers at Rs 4,596 crore.

Rupee

The rupee declined 8 paise to settle at 96.43 against the US dollar on Tuesday amid sustained outflows of foreign capital and uncertainties over a US-Iran deal.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here.