The market is expected to open in the red as trends on the SGX Nifty indicate a negative opening for the broader index in India with a loss of 66 points.
The Sensex rose 86 points to 55,550. The Nifty was up 36 points to 16,630 to form a bullish candle on the daily charts. The index had a good week in which it gained 2.4 percent and formed a strong bullish engulfing pattern on the weekly scale.
As per the pivot charts, the key support level for the Nifty is at 16,503, followed by 16,375. If the index moves up, the key resistance levels to watch out for are 16,726 and 16,822.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms that could impact Indian as well as international markets:
World shares slid on Friday, pressured by uncertainty about the conflict in Ukraine and expectations that the Federal Reserve will hike US interest rates next week. The Nasdaq and the S&P 500 fell, weighed down by tech and growth stocks. Oil prices settled up for the day but were down for the week in volatile trading.
The Dow Jones Industrial Average fell 229.88 points, or 0.69 percent, to 32,944.19, the S&P 500 lost 55.21 points, or 1.30 percent, to 4,204.31, and the Nasdaq Composite dropped 286.15 points, or 2.18 percent, to 12,843.81.
Asian shares advanced and oil slipped on Monday on hopes for progress in the Russia-Ukraine peace talks even as fighting raged on, while bond markets braced for rate rises in the US and UK this week.
Japan's Nikkei rose 1.1 percent, while MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.1 percent after sliding almost 4 percent last week.
Trends on the SGX Nifty indicate a negative opening for the broader index in India with a loss of 66 points. The Nifty futures were trading at around 16,583 levels on the Singaporean exchange.
Morgan Stanley cuts India's GDP growth forecast to 7.9% for FY23.
As higher oil prices torpedo economic recovery worldwide, Morgan Stanley has cut India's GDP forecast for the fiscal year beginning April 1 by 50 basis points to 7.9 percent, raised retail inflation projections to 6 percent, and expects the current account deficit to widen to 3 percent of the GDP.
"Even as we expect the cyclical recovery trend to continue, we expect it to be softer than we previously projected," it said in a report. "We believe that the ongoing geopolitical tensions exacerbate external risks and impart a stagflationary impulse to the economy."
IIP growth edges up to 1.3% in January from 0.7% a month earlier.
India's industrial growth, as per the Index of Industrial Production (IIP), edged up to 1.3 percent in January from 0.7 percent in December, data released on March 11 by the National Statistical Office showed.
The marginal rise in industrial growth is not unexpected. Data released late last month showed India's eight core sectors expanded by 3.7 percent year-on-year in January as against 4.1 percent the previous month. IIP growth tends to track core sector data. Industrial production contracted by 0.6 percent in January 2021.
Gold falls as stronger yields, risk appetite dent its appeal.
Gold prices fell on Monday, dragged by firmer US Treasury yields and improved risk appetite on hopes of peace between Russia and Ukraine. Spot gold was down 0.4 percent at $1,977.14 per ounce by 0045 GMT. US gold futures fell 0.4 percent to $1,976.40.
FPI selling continues for 6th straight month; net outflows at Rs 45,608 crore in March so far.
Continuing their selling spree for the sixth straight month, overseas investors have pulled out a net of Rs 45,608 crore from the Indian markets in March so far. Foreign portfolio investors (FPIs) fear that India would be more impacted by commodity price hikes, particularly in crude oil, since India is a major importer, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Indian commodity portfolio investors (FPIs) feared that India would be more impacted by commodity price hikes, particularly in crude oil, since India is a major importer, said Vijayakumar.
As per depositories' data, FPIs pulled out Rs 41,168 crore from equities, Rs 4,431 crore from the debt segment, and Rs 9 crore from hybrid instruments, taking the total net outflow between March 2-11 to Rs 45,608 crore. This is the sixth consecutive month of FPI outflows from the Indian markets.
Oil prices fall.
Oil prices fell on Sunday at the start of the session, extending last week's decline, as a US official said Russia was showing signs it might be willing to have substantive negotiations over Ukraine. Brent crude futures fell $1.82, or 1.6 percent, to $110.85 a barrel. WTI crude futures fell $2.41, or 2.2 percent, to $106.92 a barrel.
Dollar hits five-year high vs yen, euro sags amid Ukraine uncertainty.
The dollar rose on Friday, notching a five-year high against the safe-haven yen, while commodity-linked currencies slumped after Russian President Vladimir Putin said there had been some progress in talks between Moscow and Ukraine.
The dollar initially declined on the news, but then gradually firmed and was last up 0.76 percent against a basket of six global peers at 99.11. The index was on track for a 0.56 percent increase for the week, following last week's 2 percent rise, which was its largest weekly percentage gain since April 2020.
FII and DII data
Foreign institutional investors (FIIs) continue selling in India. They net sold shares worth Rs 2,263.90 crore on March 11, while domestic institutional investors (DIIs) bought equities worth Rs 1,686.85 crore, as per provisional data available on the NSE.