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    SGX Nifty down 65 points; here's what changed for market while you were sleeping

    Synopsis

    Foreign portfolio investors (FPIs) on Thursday net sold shares worth Rs 711 crore, provisional data showed. DIIs net bought shares to the tune of Rs 261 crore.

    markets-shutterShutterstock.com
    The Bank of England raised key interest rate by 50 bps to 3.5% on Thursday, marking its ninth rate increase in a row in its attempt to bring down inflation to its target after consumer prices hit a 41-year high in October
    The hawkish stance of the US Federal Reserve on interest rate hikes dented the risk-on mood in equities globally. Domestic equities are likely to remain subdued on extended profit booking.

    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 64 points, or 0.35 per cent, lower at 18,395.50, signaling that Dalal Street was headed for a negative start on Friday.

    • Tech View: Nifty 50 on Thursday formed a large red candle on the daily charts. Now, till it remains below 18442, a further fall could be seen towards 18350 and 18200 levels, whereas resistances are placed at 18535 and 18650 levels
    • India VIX: The hawkish commentary of the US Fed on rate hikes saw risk-on sentiment taking a flight in the market on Thursday. The ‘fear gauge’ rose more than 6% to 13.73 points.

    Wall Street slumps
    U.S. stock indexes closed sharply lower on Thursday, with each of the major averages suffering their biggest daily percentage drop in weeks, as fears intensified that the Federal Reserve's battle against inflation using aggressive interest rate hikes could lead to a recession.
    • Dow down 2.25%
    • S&P 500 dips 2.49%
    • Nasdaq falls 3.23%

    Asian shares drop
    Asian stocks dropped Friday after hawkish signals from central banks sparked a rout in European and US equities.

    • S&P 500 futures were little changed as of 9:30 a.m. Tokyo time. The S&P 500 fell 2.5%
    • Nasdaq 100 futures were little changed. The Nasdaq 100 fell 3.4%
    • Japan’s Topix index fell 0.8%
    • South Korea’s Kospi index fell 0.7%
    • Australia’s S&P/ASX 200 Index fell 0.7%
    • Hong Kong’s Hang Seng futures fell 0.5%

    Oil rises
    Oil prices rose in early Asian trade on Friday after falling 2% in the previous session on central bank interest rates hikes, and is poised to end the week higher after a series of positive oil demand forecasts.

    Dollar stands tall
    The safe-haven dollar held just below the month's high against the yen on Friday and maintained overnight gains versus other peers amid growing worries that continued monetary tightening at the world's biggest central banks could trigger a recession.

    FII/DII action
    Foreign portfolio investors (FPIs) on Thursday net sold shares worth Rs 711 crore, provisional data showed. DIIs net bought shares to the tune of Rs 261 crore.

    Stocks in F&O ban today
    Bharat Heavy Electricals, Delta Corp, Indiabulls Housing Finance, Gujarat National Fertilizers. Indian Railway Catering and Tourism Corp, 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 depreciated against the dollar on Thursday as the Fed’s hawkish stance on rate hikes dented sentiment. The rupee settled at 82.64 a dollar compared to 82.45 a dollar in the previous session.

    Macro news

    • The European Central Bank raised interest rates for the fourth time in a row, but at a slower pace of 50 basis points. The central bank pledged further hikes and laid out plans to drain liquidity from the financial system as part of its fight against runaway inflation

    • The Bank of England raised key interest rate by 50 bps to 3.5% on Thursday, marking its ninth rate increase in a row in its attempt to bring down inflation to its target after consumer prices hit a 41-year high in October


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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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