SGX Nifty down 25 points; here's what changed for market while you were sleeping

Domestic equities could see extended profit booking as concerns over recession amid steeper rate hikes remained following Bank of England’s policy action on Thursday.

Options data too indicates that Nifty 50 is likely to be in a consolidation phase, as most of the out-of-the-money call option premiums fell sharply in the previous trading session.

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 24.5 points, or 0.14 per cent, lower at 18,090, signaling that Dalal Street was headed for a negative start on Friday.

• Tech View: Nifty 50 has to hold above 18000 level for an upmove towards 18200-18350 zones. Immediate support levels for the index are placed at 17950 and 17888.
• India VIX: Despite the risk-off mood in the market, the volatility index fell amid closure of positions in the Nifty 50 options ahead of the weekly expiry. The ‘fear gauge’ ended 4.3% lower at 15.9425 points.

Asian shares rise
Asian equities rose on Friday, boosted by Hong Kong and China stocks, while the dollar was set for its best week in more than a month as investors priced in the prospect of the Federal Reserve taking interest rates above 5% next year.

MSCI's broadest index of Asia-Pacific shares outside Japan was 1.09% higher, while Australia's S&P/ASX 200 index rose 0.27%.


US stocks close lower
US stocks closed lower for a fourth consecutive session on Thursday as economic data did little to alter expectations the Federal Reserve would continue raising interest rates for longer than previously thought.

• Dow down 0.46%
• S&P 500 dips 1.06%
• Nasdaq falls 1.73%

Oil prices drop
Oil prices slid in early trade on Friday, extending losses from the previous session on fears U.S. interest rates will go higher than previously expected and fresh concerns that COVID outbreaks will dent fuel demand in China.

Brent crude futures dropped by 22 cents, or 0.2%, to $94.45 a barrel at 0025 GMT after falling 1.5% in the previous session. The contract was on track to fall more than 1% for the week.

U.S. West Texas Intermediate (WTI) crude futures fell 27 cents, or 0.3%, to $87.90 a barrel, deepening a 2% loss from the previous session, but on course to end flat for the week.

Dollar rises
The dollar looked set to post its best week in over a month on Friday on expectations that U.S. rates could peak higher, while sterling was on the ropes as investors revised their rate projections after a shift in tone from the Bank of England.

• Sterling edged up 0.1% to $1.1170
• Euro was up 0.08% at $0.97575
• US dollar index firmed to 112.90
• Japanese yen rose a marginal 0.07% to 148.155 per dollar
• The Aussie fell 0.02% to $0.6287

FII/DII action
Foreign portfolio investors (FPIs) net bought stocks worth Rs 678 crore on Thursday, provisional data showed. DIIs net sold shares to the tune of Rs 732 crore.


Stocks in F&O ban today
LIC Housing Finance and Punjab National Bank. 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: The Indian unit ended lower against the dollar on Thursday but the losses were limited. The currency settled at 82.8800 a dollar, against 82.7800 in the previous session.


MACRO NEWS

* Bank of England increased the bank rate by 75 basis points in its continuous efforts to bring down inflation. According to reports, this is the biggest hike in rates since 1989.


* The US services sector grew at a slower pace in October, indicating the hit to business due to high interest rates. Services PMI gauge was 54.4% in October against September's reading of 56.7%. This is the lowest reading since May 2020.


Earnings Friday
103 companies are scheduled to report earnings for the quarter ended September. Britannia Industries, Cipla, Marico, Titan Co, and TVS Motor Co are among the major ones.


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