The Indian stock market is expected to open flat as trends on SGX Nifty indicate a cautious opening for the broader index in India with a gain of 8 points.
On March 25, the BSE Sensex fell 233 points to 57,362, while the Nifty50 shed 70 points to 17,153 and formed a bearish candle on the daily as well as weekly charts. It corrected 0.8 percent for the week after a 6.4 percent rally in the previous two straight weeks.
As per the pivot charts, the key support level for the Nifty is placed at 17,055, followed by 16,957. If the index moves up, the key resistance levels to watch out for are 17,273 and 17,393.
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.
The S&P 500 ended higher on Friday as financial shares rose after the benchmark Treasury yield jumped to its highest level in nearly three years. The Nasdaq ended lower, and tech and other big growth names mostly declined, but they finished off session lows following a late-session rally.
The Dow Jones Industrial Average rose 153.3 points, or 0.44%, to 34,861.24, the S&P 500 gained 22.9 points, or 0.51%, to 4,543.06, and the Nasdaq Composite dropped 22.54 points, or 0.16%, to 14,169.30.
Asian shares stalled and oil prices slid on Monday as a coronavirus lockdown in Shanghai looked set to hit global activity, while throwing another wrench into supply chains that could add to inflationary pressures.
Early action on Monday was muted, with MSCI's broadest index of Asia-Pacific shares outside Japan off 0.1%. The index is down 2.3% for the month but well above recent lows. Japan's Nikkei dipped 0.4%, but is still almost 6% firmer for the month as a sinking yen promised to boost exporter earnings.
Trends on SGX Nifty indicate a cautious opening for the broader index in India with a gain of 8 points. The Nifty futures were trading at around 17,199 levels on the Singaporean exchange.
Oil slumps as Shanghai lockdown raises fears over a drop in demand.
Oil prices plunged about $4 on Monday as concerns over slower fuel demand in China grew after authorities in Shanghai said they would shut the country's financial hub for a COVID-19 testing blitz over nine days.
Brent crude futures slid as low as $116.00 a barrel and were trading down $3.88, or 3.2%, at $116.77 at 0131 GMT. US West Texas Intermediate (WTI) crude futures hit a low of $109.30 a barrel and were down $3.92, or 3.4%, at $109.98.
People with direct knowledge of the matter told Moneycontrol that PVR Cinemas and INOX Leisure are preparing to merge in what will be a mega consolidation of the two largest movie theatre chains in India. The PVR and Inox Leisure boards are likely to meet on Sunday, March 27, to give their approval for the merger, these people said, asking not to be named.
The combined merged companies will form a large company with a market cap of over Rs 16,000 crore. Inox Leisure stock rose over 6% on Friday to end at Rs 470/share with a Rs 5,700 crore market cap. PVR shares ended up 1.55% on Friday at Rs 1804/share, at a market cap of over Rs 11,100 crores.
The Securities and Exchange Board of India (Sebi) has proposed to ease the pricing formula used to determine the open offer price in the case of public sector undertaking (PSU) divestments. As the government prepares to dispose of its holdings in more enterprises, the move is intended to remove pricing ambiguity for possible acquirers.
The open offer price is decided by a number of market regulator-imposed conditions, including the actual price paid by the acquirer to existing promoters. However, this price must be higher than the volume-weighted average price for the previous 52 weeks, 26 weeks, or 60 days before the decision to buy the interest is made public or when the acquisition is actually signed, whichever comes first.
The ECB's Lagarde does not see a risk of stagflation.
President Christine Lagarde was quoted as saying on Saturday that she does not expect the war in Ukraine to push the euro zone into stagflation even if it does push up inflation due to higher energy prices and push down growth.
"Incoming data don’t point to a material risk of stagflation," Lagarde said in an interview with Phileleftheros published by the ECB on its website.
FPI outflow shoots past the Rs 1 lakh crore mark in 2022.
Overseas investors have pulled out a net Rs 1,14,855.97 crore from the Indian markets in the current year so far, amid heightened geopolitical tensions and inflation concerns. According to depositories data, foreign portfolio investors have sold domestic equities worth Rs 48,261.65 crore so far this month, taking the year-to-date tally this year to a massive Rs 1,14,855.97 crore.
FII and DII data
On March 25, foreign institutional investors (FIIs) have net sold shares worth Rs 1,507.37 crore, while domestic institutional investors (DIIs) have net bought shares worth Rs 1,373.02 crore, as per provisional data available on the NSE.
Stocks under F & O ban on NSE
Five stocks—Indiabulls Housing Finance, Vodafone Idea, L & T Finance Holdings, SAIL, and Sun TV Network—are under the F & O ban for March 28. 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.