Before the market begins today, here are 10 things to know.

  • March 25, 2022, 11:49 a.m.

The Indian stock market is expected to open in the green as trends on the SGX Nifty indicate a positive opening for the broader index in India with a gain of 88 points.

The BSE Sensex was down 89 points at 57,596, while the Nifty50 fell 23 points to 17,223 but formed bullish candle on the daily charts as the closing was higher than opening levels.

As per the pivot charts, the key support level for the Nifty is placed at 17,112, followed by 17,001. If the index moves up, the key resistance levels to watch out for are 17,313 and 17,402.


US Market 

US stocks rose following choppy trading abroad on Thursday, and oil prices pulled back, as investors watched western leaders present a unified front against Russia's invasion of Ukraine. Technology companies lifted US stock indices after a sharp fall in the previous session, with the tech-heavy Nasdaq Composite up 269.24 points, or nearly 2 percent, to 14,191.84.

The Dow Jones Industrial Average rose 349.44 points, or about 1 percent, to 34,707.94 and the S&P 500 gained 63.92 points, or 1.43 percent, to 4,520.16.

Asian Markets

Stocks in Japan rose in early trade Friday as Wall Street stocks rallied overnight and oil prices fell. Japan’s Nikkei 225 was up 0.3 percent, while the Topix rose 0.24 percent. Japan reported inflation data, showing its core consumer price index hit a two-year high in March, according to Reuters. Australia’s S&P/ASX 200 stayed in positive territory as it inched up 0.13 percent, with some gains in miners.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the broader index in India with a gain of 88 points. The Nifty futures were trading around 17,310 levels on the Singaporean exchange.

Oil drops as supply crunch fears ease, trading costs rise

Oil prices fell about a $1 on Friday as the United States and allies considered releasing more oil from storage to cool markets and as traders faced higher costs for trading benchmark Brent futures.

Brent crude futures fell $1.07, or 0.9 percent, to $117.96 a barrel at 0053 GMT, after sliding 2.1 percent in the previous session. US West Texas Intermediate (WTI) crude futures fell $1.20, or 1.1 percent, to $111.14 a barrel, having dropped 2.3 percent in the previous session.

India's 2022 GDP growth downgraded to 4.6% due to ongoing war in Ukraine: UN report

India’s projected economic growth for 2022 has been downgraded by over 2 per cent to 4.6 percent by the United Nations, a decrease attributed to the ongoing war in Ukraine, with New Delhi expected to face restraints on energy access and prices, reflexes from trade sanctions, food inflation, tightening policies and financial instability, according to a UN report released on Thursday.

The UN Conference on Trade and Development (UNCTAD) report downgraded its global economic growth projection for 2022 to 2.6 percent from 3.6 percent due to shocks from the Ukraine war and changes in macroeconomic policies that put developing countries particularly at risk.

The report said while Russia will experience a deep recession this year, significant slowdowns in growth are expected in parts of Western Europe and Central, South and South-East Asia.

Policy changes to help revive economy also have trade-offs, says RBI paper

Measures such as demand management policy or flexible interest rates, which are aimed at reviving the economy and helping households may also adversely affect the latter, according to a working paper of the Reserve Bank of India.

The study suggested that supply-side measures taken during COVID-19 pandemic could lead to a decline in the government’s social expenditure, adversely affecting household welfare. On the other hand, managing demand to bring respite to households also can have adverse effects.

Imports set to reach record high of $600 billion in FY22

After crossing the $550-billion mark in the first 11 months of the financial year, India’s import bill is set to hit record highs in FY22 and probably touch $600 billion, sources say. Led by high prices of crude oil along with gold, diamond and industrial inputs, imports are set to continue their strong rise in the first half of FY23.

The government has, however, been silent about its import bill even as it celebrated a record export turnover. The import numbers were not mentioned even in the press release issued by the commerce ministry to announce the achievement on exports or at the official briefing on March 23. The government announced that day that export turnover had risen to $400 billion by March 21, which was historic and impressive considering the disruptions experienced by global supply chains through the year.

India is estimated to have exported merchandise worth $26 billion in the first 21 days of March, after exporting goods worth $374 billion between April and February of FY22. As a result, total exports reached the $400-billion annual target set earlier for FY22, with the final tally for the year set to reach $410 billion. The government broke the convention of releasing trade data on the last day of the month to make the announcement.

US in the jaws of severe price inflation shock; Fed may accept recession to tame inflation: Citi

Nathan Sheets, Global Chief Economist, Citi, on Thursday, said that the US is in the jaws of a severe price inflation shock. While it has been building up for a while, it has only been aggravated further by a supply shock due to Russia’s invasion of Ukraine. Sheets explained that there are also rising concerns about the durability of spending.

"My judgment is that the United States is in the jaws of a very severe supply shock and what we are seeing is a significant inflation, and, frankly, significant upward pressures on inflation as well. At the same time, I think that there is rising concern in the market about the durability of spending and the durability of the economy, especially as the Fed launches into a hiking cycle," he said.

FII and DII data

Foreign institutional investors (FIIs) have net sold shares worth Rs 1,740.71 crore, while domestic institutional investors (DIIs) have net bought shares worth Rs 2,091.07 crore on March 24, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Seven stocks – Balrampur Chini Mills, Delta Corp, Indiabulls Housing Finance, Vodafone Idea, L&T Finance Holdings, SAIL, and Sun TV Network – are under the F&O ban for March 25. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

Author : Rajdhani Delhi Representative

Rajdhani delhi representative

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