SGX Nifty up 320 points; here's what changed for market while you were sleeping

Indian equities are set to extend losses from Thursday as data showed that inflation in the US remained hotter than expected, which stoked fears of aggressive rate hikes by the Federal Reserve.

Consumer price inflation index rose 8.2 per cent on year in September, with the core CPI rising 6.6% to a 40-decade high.

The weakness in the global equities is set to spillover and see Nifty 50 falling below 17000 points on Friday.

Positioning in the options of Nifty 50 indicates the caution exercised by investors ahead of the US CPI data. Open interest additions were seen in 16800, 16700, and 16900 put options of the index.

Here's breaking down the pre-market actions:


STATE OF THE MARKETS

SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 326 points, or 1.92 per cent, per cent higher at 17,283, signaling that Dalal Street was headed for a positive start on Friday.

• Tech View: The Nifty 50 has been taking support near its 200-DMA at 16950 points. Data suggests the index has major support at 16750-16800 level, and it will be crucial to see if Nifty 50 holds above these levels.

• India VIX: Though caution prevailed in the market ahead of US CPI data, the movement in the fear gauge was minimal on Thursday. The index ended 0.6 per cent higher at 20.29 points.

Asian stocks rally at open
Asian shares tracked Wall Street higher on Friday, although gains could quickly unwind as investors grapple with the reality that surging U.S. inflation will likely lead to higher interest rates for longer, hastening a global recession. MSCI's index of Asia-Pacific shares outside Japan was trading 2.45 per cent higher.

US stocks roared on Thursday
US stocks surged to close more than 2 per cen higher on Thursday, as technical support and investors covering short bets drove a dramatic rebound from a selloff earlier in the day. Wall Street staged its biggest comeback in years Thursday, as stocks roared back

• Dow Jones rallied 2.83% to 30,038.72
• S&P 500 surged 2.60% to 3,669.91
• Nasdaq zoomed 2.23% to 10,649.15

Dollar holds firm
The dollar took a breather on Friday after a volatile overnight session as red-hot U.S. inflation data pointed to more aggressive interest rate hikes, while traders were on edge about intervention as the yen wallowed near a three-decade low. The dollar index was little changed after falling 0.5 per cent in the previous session.

Oil prices slid further
Oil prices slipped in early Asian trade on Friday as US crude and gasoline inventories jumped, while Saudi Arabia and Washington continued to clash over plans by OPEC+ to slash production.

Brent crude futures fell 15 cents, or 0.2 per cent, to $94.42 per barrel by 0034 GMT, while US West Texas Intermediate (WTI) crude futures were down 21 cents, or 0.2 per cent, cents at $88.90 per barrel.


FII action
Foreign portfolio investors (FPIs) sold in the domestic market for the fifth straight session on Thursday. Net-net, they sold shares worth Rs. 1,636 crores, provisional data available with NSE suggested. DIIs were net buyers of stocks to the tune of Rs. 753 crores.

Stocks in F&O ban today
Two stocks- Delta Corp and Indiabulls Housing Finance- are under the F&O ban for Friday, October 14. 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: Despite the weakness in the equity market, the rupee remained largely steady against the dollar on Thursday. The Indian unit settled at 82.3450 a dollar compared with 82.3150 on Wednesday.

MACRO NEWS
The overall CPI rose 0.4 per cent in September from August, and this rise was higher than expectations. US CPI gained 8.2 per cent on year in September. The core CPI, which excludes volatile food and energy prices, rose 6.6 per cent on year, the highest level since 1982.

Earnings Friday
19 companies are scheduled to report earnings for the quarter ended September. Bajaj Auto, Shree Cement, Oberoi Realty are among the major ones.