SGX Nifty up 72 points: Asian markets, dollar movement, Q3 earnings, FPI flows & more

After a muted session on Tuesday, domestic stock indices are set for a positive opening on Wednesday, tracking firm cues from global markets. Asian stocks were up in the early trade, as US stocks rallied overnight after US the Fed Chair Jerome Powell’s  speech. Back home, traders will be eyeing the RBI policy outcome later in the day. Here's what you should know before the opening bell:

Nifty outlook

Nifty index faces stiff resistance around the 17,800-17,850 zone where aggressive call writing is visible. The index needs to surpass this level on a closing basis to witness any short coverings move toward the 18,200 level, said Rupak De, Senior Technical Analyst at LKP Securities. "The support on the lower end is at the 17,600 level and, if breached, it will lead to a further correction towards 17,450-17,400 levels," he said.

SGX Nifty signals a positive start

Nifty futures on the Singapore Exchange quoted 72 points, or 0.41 per cent, higher at 17,802, hinting at a positive start for the domestic market on Wednesday.

Asian shares open higher

Asian shares opened higher on Wednesday,  tracking a rally in US stocks overnight after the Federal Reserve Chair Jerome Powell’s speech raised hopes of less aggressive rate hikes going ahead. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.68 per cent. Australia's ASX 200 gained 0.26 per cent; New Zealand's DJ was up 0.46 per cent; China's Shanghai added 0.14 per cent; Hong Kong's Hang Seng jumped 0.50 per cent; Korea’s Kospi advanced 1.14 per cent.

RBI policy outcome

The Reserve Bank of India's (RBI) will announce its policy outcome on Wednesday. There are expectations that the MPC may hike policy rate by 25 basis points. A dovish remark from the RBI governor Shaktikanta Das may lift market mood.  “ The MPC will further ease its pace of hike this week and deliver 25bps, with the decision possibly getting more divided in the form of a vote split, as evident from the MPC minutes,” Emkay Global said.

Oil prices edge higher

Oil prices rose early on Wednesday, extending gains from the previous two days, as the dollar fell after Federal Reserve Chair Jerome Powell sounded less hawkish on interest rates than what markets had expected and as US crude stocks surprisingly fell. Brent crude futures inched up by 11 cents, or 0.1 per cent, to $83.80 a barrel, adding to a 3.3 per cent gain in the previous session.

Dollar heads lower

The dollar eased on Wednesday after Federal Reserve Chair Jerome Powell failed to offer fresh signs of a hawkish pushback against a resilient labour market in the United States, leading investors to bet that interest rates may not rise much further. The US dollar index steadied at 103.31. Sterling rose 0.06 per cent to $1.2057, whereas the Euro was last 0.04 per cent higher at $1.0732. The Japanese yen rose 0.16 per cent to 130.88 per dollar.

US stocks ended higher

US stocks rallied to a convincingly higher close on Tuesday, but trade was choppy as investors digested comments from Federal Reserve Chair Jerome Powell about how long the central bank may need to tame inflation. The Dow Jones Industrial Average rose 265.67 points, or 0.78 per cent, to 34,156.69, the S&P500 index gained 52.92 points, or 1.29 per cent, to 4,164 and the Nasdaq Composite index added 226.34 points, or 1.9 per cent, to 12,113.79.

Q3 earnings today

Shree Cements, Adani Power, Samvardhana Motherson International, Adani Wilmar, Trent, Cummins India, Honeywell Automation India, Oberoi Realty, UNO Minda, Escorts Kubota, 3M India, SKF India, Piramal Enterprises, Equitas Small Finance Bank, Endurance Technologies, JB Chemicals & Pharmaceuticals, Narayana Hrudayalaya, KIOCL, Piramal Pharma, Godrej Agrovet, Symphony, NCC and Graphite India are among the companies that will announce their Q3 earnings today.

Stocks in F&O ban

Ambuja Cements is the only stock which has been put under F&O ban by National Stock Exchange (NSE) for Wednesday, February 8. 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 sell shares worth Rs 2,560 crore

Provisional data available with NSE suggests FPIs turned net sellers of domestic stocks to the tune of Rs 2,560 crore on Tuesday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 639.82 crore.

Rupee rises 6 paise against dollar

The rupee appreciated 6 paise to close at 82.70 against the US dollar on Tuesday, as a weak American currency against major rivals overseas boosted investor sentiments. However, muted domestic equities, unabated foreign capital outflows and rising crude prices restricted the rupee's rise, forex dealers said.

Note: With inputs from PTI, Reuters and other agencies

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