Top 10 things to know before the market opens today

  • Feb. 18, 2022, 11:26 a.m.

The market is expected to open in the red as trends on the SGX Nifty indicate a negative opening for the broader index with a loss of 64 points.

The BSE Sensex fell 105 points to 57,892, while the Nifty50 declined 18 points to 17,305 and formed a bearish candle on the daily charts as the closing was lower than the opening levels on Thursday.

As per the pivot charts, the key support levels for the Nifty are placed at 17,213, followed by 17,121. If the index moves up, the key resistance levels to watch out for are 17,420 and 17,535.

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: 

 

US stocks slid on Thursday, with the S&P 500 marking its biggest daily percentage drop in two weeks, as investors shifted to defensive sectors and safe havens such as bonds and gold as geopolitical tensions between Washington and Russia over Ukraine flared.

The Dow Jones Industrial Average fell 622.24 points, or 1.78 percent, to 34,312.03, the S&P 500 lost 94.75 points, or 2.12 percent, to 4,380.26, and the Nasdaq Composite dropped 407.38 points, or 2.88 percent, to 13,716.72.

Asian markets

Asian markets slipped on Friday and gold stood at an eight-month high after an exchange of fire in eastern Ukraine and renewed US warnings of an imminent Russian invasion had investors looking for safety ahead of the weekend.

MSCI's broadest index of Asia-Pacific shares outside Japan, was down 0.3% in early trade. Japan's Nikkei fell 1.4 percent. Korean shares and Australian shares each fell 1 percent.

SGX Nifty

Trends on SGX Nifty indicate a negative opening for the broader index in India with a loss of 64 points. The Nifty futures were trading at 17,203 levels on the Singaporean exchange.

US weekly jobless claims rise.

The number of Americans filing new claims for jobless benefits unexpectedly rose last week, but remained below pre-pandemic levels as labor market conditions continue to tighten. The first increase in a month reported by the Labor Department on Thursday did not change economists' expectations for another month of solid employment gains in February.

Initial claims for state unemployment benefits increased by 23,000 to a seasonally adjusted 248,000 for the week ended February 12. Reuters economists polled by Reuters had forecast 219,000 applications for the latest week.

Expect 5 Fed rate hikes in 2022, about a 50 bps increase in March: Nomura

The Federal Reserve is gearing up for an aggressive tightening in the times to come, said Robert Subbaraman, chief economist and head of global markets research at financial services group Nomura. In an interview with CNBC TV18, he puts into perspective the ongoing global macroeconomic situation in the light of the US Federal Reserve's current hawkish stances.

"At Nomura, we are expecting a 50 basis point hike during the March meeting, despite the consensus being for a 25 point rise. There is an outlook for 5 more such hikes this year, totaling around 150 basis points in the rise during the year. With CPI headlining at over 7 percent and the Fed not beginning to raise rates and still looking to expand its balance sheet at the moment, there is a long way to go in terms of the Fed adopting not a tight, but actually a neutral stance. There was considerable discussion in the FOMC minutes around balance sheet normalization as well, "he noted.

Inflation is here to stay: Nestle India MD

Food and beverage company Nestle India is considering ‘judicious price hikes’ going ahead as it battles decade-high inflation in several raw materials. According to Managing Director Suresh Narayanan, inflation is here to stay and, hence, the company is looking at cost-cutting measures and price hikes.

"Food inflation is a matter of concern and it is something that we have to watch out for. Of course, as a company, we have got the necessary competencies and the ability to manage this. Nevertheless, it is important to note that food inflation and commodity inflation are here to stay for a while at least, "said Narayanan while addressing a call after reporting its fourth-quarter results.

Nestle, said its MD, is grappling with inflation in key commodities and raw materials such as arabica coffee, edible oil, sugar, wheat flour, SMP, aluminum, plastic-PP, paper, etc. He added that the prices of several of these products are at their ten-year highs.

Morgan Stanley expects the Fed to hike rates six times in 2022.

According to a research report from the bank on Thursday, Morgan Stanley expects the US Federal Reserve to raise interest rates six times this year for a total of 150 basis points, a faster increase than previously predicted.

Major investment banks have been penciling in an increasingly strong run of interest rate hikes for 2022 after hotter-than-expected inflation data ramped up pressure on the Fed to take a firmer stand against soaring prices.

Oil falls on the prospect of Iran oil sanctions easing.

Oil prices retreated on Friday after wild swings during the week, as the prospect of extra supply from Iran returning to the market outweighed fears of a possible Russian invasion of Ukraine, which could disrupt supply.

Brent crude futures fell 68 cents, or 0.7%, to $92.29 a barrel at 0124 GMT, extending a 1.9% drop from the previous session.

US West Texas Intermediate (WTI) crude futures shed 67 cents, or 0.7%, to $91.09 a barrel, after sliding 2% in the previous session.

FII and DII data

On February 17, foreign institutional investors (FIIs) sold a net of Rs 1,242.10 crore worth of shares, whereas domestic institutional investors (DIIs) bought a net of Rs 901.10 crore worth of shares in the Indian equity market on February 17, as per provisional data available on the NSE.

Stocks under F & O ban on NSE

Two stocks – Escorts and Indiabulls Housing Finance – are under the F & O ban for February 18. 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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