The Indian stock market is expected to open in the red as trends on the SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 93 points.
The BSE Sensex was down 435 points at 60,176, while the Nifty50 fell below the crucial 18,000 mark, correcting 96 points to close at 17,957, forming a bearish candle on the daily charts.
As per the pivot charts, the key support level for the Nifty is placed at 17,887, followed by 17,818. If the index moves up, the key resistance levels to watch out for are 18,061 and 18,165.
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.
Wall Street's main indices fell on Tuesday, dragged by weakness in tech and other growth stocks, after comments from Federal Reserve Governor Lael Brainard spooked investors about potential aggressive actions by the central bank to control inflation. The tech-heavy Nasdaq posted its biggest daily percentage drop in about a month, with declines in heavyweight stocks such as Apple Inc. and Amazon.com Inc.
The Dow Jones Industrial Average fell 280.7 points, or 0.8 percent, to 34,641.18, the S&P 500 lost 57.52 points, or 1.26 percent, to 4,525.12, and the Nasdaq Composite dropped 328.39 points, or 2.26 percent, to 14,204.17.
Shares in Asia-Pacific slipped in Wednesday morning trade following an overnight surge in the US 10-year Treasury yield. The Nikkei 225 slipped 1.28 percent in morning trade, while the Topix index fell 1.04 percent. South Korea’s Kospi dipped 0.89 percent. Elsewhere, the S&P/ASX 200 in Australia declined 0.42 percent.
Trends on SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 93 points. The Nifty futures were trading at around 17,928 levels on the Singaporean exchange.
Oil eases on pandemic worries and a strong US dollar.
Oil prices eased in volatile trade on Tuesday, pressured by a rising US dollar and growing worries that new coronavirus cases could slow demand, but losses were limited by supply concerns due to sanctions on Russia for alleged war crimes.
Brent futures fell 89 cents, or 0.8 percent, to settle at $106.64 a barrel. US West Texas Intermediate (WTI) crude fell $1.32, or 1.3 percent, to settle at $101.96. Oil prices could gain support after settlement if analysts' forecasts are correct and US crude inventories declined by around 2.1 million barrels last week as well.
The upcoming RBI policy is likely to be the most crucial after March 2020: key indicators to watch
After a two-day review, amid concern over inflation that is quickening on the back of higher crude oil and other commodity prices, Reserve Bank of India (RBI) Governor Shaktikanta Das will unveil the first monetary policy of the new financial year on Friday, April 8, after a two-day review.
The review by the six-member Monetary Policy Committee (MPC) led by Das will likely indicate the course RBI will adopt in the remainder of financial year 2023 as it seeks to strike a fine balance between sustaining growth and curbing inflationary pressures in the economy.
This week’s monetary policy announcement is seen as the most crucial since the one announced by the RBI in March 2020, when COVID-19 was reaching Indian shores after sparking worldwide concern over its impact on global growth.
As the US services sector regains momentum, inflation clouds the outlook.
US services industry activity picked up in March, boosted by the rollback of pandemic restrictions, but higher prices for fuel and other commodities because of Russia's war against Ukraine are creating uncertainty for many businesses.
The Institute for Supply Management's survey on Tuesday showed capacity constraints and inflation remained major challenges, though the labor crunch had eased. According to Anthony Nieves, chair of the ISM Services Business Survey Committee, the Russia-Ukraine war "has impacted material costs, most notably fuel and chemical prices."
Bank credit growth is likely to be 8.9-10.2% this fiscal, according to a report
The outlook for banks is expected to be stable amid an improvement in credit growth of 8.9-10.2 percent and a decline in provisions in the current fiscal, rating agency ICRA Ratings said on Tuesday. The gross non-performing advances (GNPAs) of banks are expected to decline to 5.6–5.7 percent by March 2023, as against an estimate of 6.2–6.3 percent by March 2022.
"ICRA Ratings expects the outlook for banks to be stable in FY23, based on continued improvement in earnings driven by improved credit growth of 8.9-10.2 percent in FY23 (8.3 percent for FY22 (expected) and 5.5 percent in FY21) and a decline in credit provisions," the agency said in a report on Tuesday.
Global bond sales to cross $10 trillion in 2022: S&P Global Ratings
Global sovereign borrowing will reach $10.4 trillion in 2022, nearly a third above the average before the coronavirus pandemic, S&P Global Ratings said in a report. Despite an economic recovery, borrowing will stay elevated because of high debt rollover requirements and the war in Ukraine, the ratings agency said in an annual note.
While 137 countries will borrow an equivalent of $10.4 trillion in 2022, an estimated 30 percent lower than in 2020, the overall figure is one-third higher than average borrowing between 2016 and 2019, S&P said. "Tightening monetary conditions will push up government funding costs, "S&P analysts said.
FII and DII data
Foreign institutional investors (FIIs) have continued their buying spree in India as they have net bought shares worth Rs 374.89 crore, while domestic institutional investors (DIIs) have also net purchased shares worth Rs 105.42 crore on April 5, as per provisional data available on the NSE.
The World Bank cuts East Asia's 2022 GDP forecast on the Ukraine war.
The World Bank cut its growth forecast for East Asia and the Pacific for 2022 to reflect the economic impact of Russia's invasion of Ukraine, warning the region could lose further momentum if conditions worsen.
In a report on Tuesday, the Washington-based lender said it expected 2022 growth in the developing East Asia and Pacific region, which includes China, to expand by 5 percent, lower than its 5.4 percent forecast in October.