SGX Nifty down 30 points; here's what changed for market while you were sleeping

After witnessing profit booking for two sessions, domestic equities could see a trend reversal if the RBI announces a smaller hike in the repo rate and also offers a dovish view on future policy action.

On Tuesday, traders stuck to at-the-money strike prices of both call and put options of Nifty 50 amid caution ahead of the policy review. However, build-up of open interest in out-of-the-money call options of the index suggests that the market could see a reversal in trend in case of a positive surprise from RBI.

Here's breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 28.5 points, or 0.15 per cent, lower at 18,724, signaling that Dalal Street was headed for a negative start on Wednesday.

• Tech View: Nifty 50 ending sharply off lows on Tuesday has raised hopes of a bounceback in the index. For the index, 18700 would be a key level to watch out for, as an upmove above the same could take it to 18800-18850.
• India VIX: Risk-off sentiment ahead of RBI’s policy action lifted the ‘fear gauge’ higher on Tuesday. The volatility index ended 2.3% higher at 14.0425 points.

Asian stocks fall
Asian stocks followed US shares lower after unexpectedly strong services data bolstered the case for the Federal Reserve to deliver higher interest rates.

• S&P 500 futures rose 0.2% as of 10:27 a.m. Tokyo time. S&P 500 fell 1.8%
• Nasdaq 100 futures rose 0.3%. Nasdaq 100 fell 1.7%
• Japan’s Topix index was little changed
• South Korea’s Kospi index fell 0.5%
• Hong Kong’s Hang Seng Index fell 1.6%
• China’s Shanghai Composite Index fell 0.4%
• Australia’s S&P/ASX 200 Index fell 0.2%

US stocks end lower
Wall Street ended lower on Tuesday, with the S&P 500 extending its losing streak to four sessions, as skittish investors fretted over Federal Reserve rate hikes and further talk of a looming recession.

• Dow down 1.03%
• S&P dips 1.44%
• Nasdaq falls 2%

Dollar edges up
The dollar crept higher on Wednesday as top executives from the biggest U.S. banks warned of an impending recession, which dampened risk appetite and kept the greenback supported.

• The euro rose 0.2% to $1.0516
• The Japanese yen rose 0.3% to 136.38 per dollar
• The offshore yuan rose 0.2% to 6.9577 per dollar

Oil prices mixed
Oil prices were mixed in early Asian trade on Wednesday after falling to their lowest settlement levels this year as economic uncertainty and the prospect of higher interest rates pressured prices.


FII/DII action
Foreign portfolio investors (FPIs) on Tuesday net sold shares worth Rs 635 crore, provisional data showed. DIIs net bought shares to the tune of Rs 559 crore.


Stocks in F&O ban today
Punjab National Bank, Indiabulls Housing Finance, and Gujarat Narmada Fertilisers. 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.

Rupee: On the back of dollar outflows from corporates, the Indian rupee dropped 1% on Tuesday to end at a 1 month-low of 82.61 against the dollar, compared to Monday’s close of 81.7900.

Macro news
Fitch Ratings retained its projection of India’s GDP growth for FY23 at 7.0%, following a better-than-expected growth in July-September. But, it has cut FY24 growth forecast to 6.2% from 6.7%.

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