SGX Nifty up 70 points; here's what changed for market while you were sleeping

A lower-than-expected inflation print in the US ahead of the US Federal Reserve’s rate action bolstered sentiment and pushed stocks on Wall Street higher on Tuesday. This is likely to give a fillip to shares in the domestic market and see the Nifty 50 inching towards 18700 points. 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 67 points, or 0.36 per cent, higher at 18,768, signaling that Dalal Street was headed for a positive start on Wednesday.

• Tech View: Nifty 50 on Tuesday formed a bullish candle on the daily scale with a long lower shadow. It has to hold above 18535 level for an upmove towards 18750-18,880 levels. Supports are placed at 18442 and then at 18350.
• India VIX: Strength in the market pulled down the volatility index to a 15-month low of 11.4325 points intraday on Tuesday. The index ended 3.3% down at 12.8825 points.

US stocks rise
U.S. stocks rose on Tuesday after a unexpectedly small consumer price increase buoyed optimism that the Federal Reserve could soon dial back its inflation-taming interest rate hikes, but concerns remained the central back could stay aggressive.

• Dow up 0.3%
• S&P 500 rises 0.73%
• Nasdaq gains 1.01%

Asian stocks edge higher
Stocks in Asia followed equities on Wall Street higher after US inflation cooled ahead of the Federal Reserve’s policy decision later Wednesday.

• Futures on the S&P 500 were little changed as of 9:30 a.m. Tokyo time. The S&P 500 gained 0.7%
• Nasdaq 100 futures were little changed. The Nasdaq 100 rose 1.1%
• Hang Seng futures fell 0.1%
• The Topix Index rose 0.1%
• Australia’s S&P/ASX 200 Index rose 0.1%

Oil prices slip
Oil prices fell in early trade on Wednesday after industry data showed a big build in U.S. crude inventories, rather than the decline forecast by analysts, reinforcing fears about weakening demand even as supply tightens.

Dollar weak
The U.S. dollar struggled to gain foothold on Wednesday after a sharp dive overnight on cooler-than-expected inflation data which fuelled expectations that the Federal Reserve will chart a moderate rate hike path later in the day.

FII/DII action
Foreign portfolio investors (FPIs) on Tuesday net bought shares worth Rs 620 crore, provisional data showed. DIIs net bought shares to the tune of Rs 37 crore.

Stocks in F&O ban today
Bharat Heavy Electricals, Delta Corp, and Gujarat National Fertilizers. 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 slumped to an over 1-month low against the dollar on Tuesday, settling at 82.8050 compared to 82.5300 on Monday.

Macro news

• US consumer price index-based inflation increased lesser-than-expected 0.1% in November after rising 0.4% in October
• The Organization of Petroleum Exporting Countries (OPEC) retained its projection for global crude oil demand in 2022 and 2023 at 2.5 million barrels per day (bpd) and 2.2 million bpd, respectively

IPO Corner

• Landmark Cars IPO, which opened on Tuesday, received muted response on Day 1. The company received bids for a cumulative 14,04,383 shares, against the issue size of 80,41,805 shares.
• General Atlantic-backed KFin Technologies will launch its initial public offer today

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