SGX Nifty up 39 points: Asian stocks, crude prices, dollar movement, Q4 earnings & more

Domestic stocks are likely open higher on Wednesday amid a weakness in global markets. Asian stocks were trading in the red  while US stocks settled lower overnight ahead of US inflation numbers for April due later today. Back home, the last leg of the Q4 numbers will sway investor sentiment. Here's what you should know before the Opening Bell:

Nifty outlook
Nifty index will continue to move up but at a gradual pace. The highest put open interest is at the 18,000 level for the monthly expiry, which will act as a strong support for the index, said Rahul Ghose, Founder & CEO – Hedged, an algorithm-powered advisory platform.
 
"For this week's expiry, the number of call writers and put writers are very evenly poised. Initiating Short Straddles with offset units could be a good trade to play for, he said.

SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 39 points, or 0.21 per cent, higher at 18,350, hinting at a positive start for the domestic market on Wednesday.

Asian stocks in the red
Asian markets opened lower on Wednesday as a heavy dose of Japanese corporate earnings and a smattering of South Korean economic data give Asian markets a local steer against a backdrop of growing unease surrounding the US debt ceiling crisis. Japan's Nikkei dropped 0.47 per cent; China's Shanghai tanked 1.03 per cent; Hong Kong's Hang Seng plunged 0.63 per cent and Korea's Kospi fell 0.08 per cent.

Oil prices edge lower
Oil prices slipped in early trade on Wednesday after industry data showed a surprise build in US crude stocks, while investors awaited US inflation data for April that could give direction for the Federal Reserve's next rate decision. Brent crude dropped 16 cents to $77.28 a barrel at 0008 GMT, while US West Texas Intermediate (WTI) crude dipped 20 cents to $73.51, paring gains from the previous session.

US Dollar softens
The dollar weakened broadly on Wednesday after US President Joe Biden and top lawmakers failed to break a deadlock on the debt ceiling crisis, though currency moves were marginal amid caution ahead of US inflation data later in the day. The greenback slipped in early Asia trade, with the euro rising 0.11 per cent to $1.0971 and sterling gaining 0.1 per cent to $1.2634. The kiwi edged 0.05 per cent higher to $0.6338. Against a basket of currencies, the US dollar index was last 0.07 per cent lower at 101.55. The Japanese yen rose 0.1 per cent to 135.11 per dollar.

Wall Street stocks settle lower
US stock indices closed lower on Tuesday as investors grew more cautious ahead of a US consumer price index report and a meeting between US political leaders to discuss the debt ceiling. Investors will look for clues on whether inflation is continuing to ease following the Labor Department's consumer price index (CPI) report on Wednesday. The Dow Jones Industrial Average fell 56.88 points, or 0.17 per cent, to 33,561.81, the S&P 500 lost 18.95 points, or 0.46 per cent, to 4,119.17 and the Nasdaq Composite dropped 77.36 points, or 0.63 per cent, to 12,179.55.

Q4 earnings today
Larsen & Toubro, Godrej Consumer Products, Dr. Reddy's Laboratories, Bosch, Procter & Gamble Hygiene & Healthcare, Gujarat Gas, Escorts Kubota, Relaxo Footwear, Ratnamani Metals & Tubes, Sanofi India, BASF India, JBM Auto, Cera Sanitaryware, Prism Johnson, HG Infra Engineering, MAS Financial Services, Pricol, Sagar Cements, Venky's India and Orchid Pharma are among the companies that will announce their earnings for the March 2023 quarter.

Stocks in F&O ban
Four stocks namely Canara Bank, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Bharat Heavy Electrical (BHEL) and Manappuram Finance are put under the ban by NSE for Wednesday. Derivative contracts in a security are banned when it crosses 95 per cent of the market-wide position limit (MWPL). No new positions can be created in the derivative contracts of said security. This prohibition is lifted when the open interest in the stock drops below 80 per cent of the MWPL across exchanges.

FPIs buy shares worth Rs 1,942 crore
Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 1,942.19 crore on Tuesday. Similarly, domestic institutional investors (DIIs) turned net buyers of Indian equities to the tune of Rs 404.70 crore.

Rupee falls 28 paise against dollar
The rupee fell 28 paise to nearly three-week low of 82.06 against the US currency on Tuesday, weighed down by a strong greenback against major rivals overseas and a muted trend in domestic equities. At the interbank foreign exchange, the domestic unit opened at 81.84 against the dollar and slipped below the 82 level to close at 82.06, down 28 paise from its previous close - the largest single-day fall in a month.

Note: With inputs from PTI, Reuters and other agencies