With a gain of 42 points on SGX Nifty, the wider index in India is off to a positive start.

  • May 17, 2022, 12:06 p.m.

The market is expected to open in the green as trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 42 points.

The BSE Sensex rose 180 points to 52,974 after losing more than 5 percent in the previous six consecutive sessions, while the Nifty50 gained 60 points at 15,842 and formed a Doji candlestick pattern on the daily charts, indicating indecisiveness among bulls and bears.

As per the pivot charts, the key support level for the Nifty is placed at 15,729, followed by 15,615. If the index moves up, the key resistance levels to watch out for are 15,967 and 16,092.

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 markets

The S&P 500 ended lower on Monday, with Tesla and other growth stocks losing ground after downbeat Chinese economic data added to worries about a global slowdown and rising interest rates. The S&P 500 declined 0.39 percent to end the session at 4,008.01 points. The Nasdaq declined 1.20 percent to 11,662.79 points, while the Dow Jones Industrial Average rose 0.08 percent to 32,223.42 points.

Asian markets

Shares in Asia-Pacific were mixed in Tuesday morning trade, with investors looking ahead to the release of meeting minutes from the Reserve Bank of Australia.

The Nikkei 225 in Japan slipped 0.13 percent in early trade while the Topix index hovered above the flatline. South Korea’s Kospi climbed 0.46 percent, while the S&P/ASX 200 in Australia traded 0.15 percent higher. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.25 percent higher.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the broader index in India with a gain of 42 points. The Nifty futures were trading at around 15,886 levels on the Singaporean exchange.

LIC listing today.

Life Insurance Corporation of India will make its debut on the stock markets on Tuesday, March 17, after a long-awaited initial public offering (IPO) that attracted overwhelming investor response and raised Rs. 21,000 crore for the government.

The listing comes at a time when the stock markets are volatile amid accelerating inflation and rising interest rates. With shares in the state-owned giant in the demat accounts of successful bidders, investors face the question of what to do with the stock—whether to exit at the time of listing if it lists at a premium, hold it for the short term or treat it as a long-term investment.

Market experts are expecting a tepid listing for LIC because of the current upheaval in global equity markets, blamed on Russia's February 24 invasion of neighboring Ukraine, supply-chain disruptions caused by the war, and interest rate increases by the US Federal Reserve and other central banks that have ended years of easy money.

SBI economists say the RBI may hike rates by 75 bps by August.

At least 59 percent of the accelerated inflation is attributable to the impact of the geopolitical conflict triggered by the Russian invasion of Ukraine, economists at SBI said on Monday. In the face of the heightened inflation situation—the headline number touched nearly 7.8 percent for April, and the RBI is set to hike rates by another 0.75 percent to get the repo rate back to the pre-pandemic level of 5.15 percent, they added.

Oil prices open lower as the EU struggles to seal Russia's import ban.

Oil prices opened lower in early Asian trade on Tuesday after the European Union's efforts to enact a ban on Russian oil imports, a move that would tighten global supply, ran into resistance from member country Hungary.

At 0034 GMT, Brent crude futures fell 35 cents, or 0.3 percent, to $113.89 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 52 cents, or 0.5 percent, to $113.68 a barrel.

Results on May 17

Bharti Airtel, Indian Oil Corporation, DLF, PI Industries, Abbott India, Bajaj Electricals, Bajaj Healthcare, EID Parry (India), Indoco Remedies, IRB Infrastructure Developers, Jubilant Ingrevia, Kajaria Ceramics, Dr. Lal PathLabs, Minda Corporation, Sapphire Foods India, Fairchem Organics, Galaxy Surfactants, GMR Infrastructure, NOCIL, Nucleus Software Exports, Sun Pharma Advanced Research Company, and Zydus Wellness will be in focus ahead of March quarter earnings on May 17.

FII and DII data

On May 16, foreign institutional investors (FIIs) net sold shares worth Rs 1,788.93 crore, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 1,428.39 crore worth of shares on May 16, as per provisional data available on the NSE.

China's economy skids as lockdowns hit factories and retailers.

China's retail and factory activity fell sharply in April as wide COVID-19 lockdowns confined workers and consumers to their homes and severely disrupted supply chains, casting a long shadow over the outlook for the world's second-largest economy.

Retail sales in April shrank 11.1 percent from a year earlier, the biggest contraction since March 2020, data from the National Bureau of Statistics (NBS) showed on Monday, a steeper decline than forecast in a Reuters poll. Factory production fell 2.9 percent from a year earlier, dashing expectations for a rise and the largest decline since February 2020, as anti-virus measures snarled supply chains and paralysed distribution.

Stocks under F & O ban on NSE

Three stocks – GNFC, Indiabulls Housing Finance, and Punjab National Bank – are under the F & O ban for May 17. 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.

The economists said they did a study of the Russian invasion's impact on inflation, which revealed that 59 percent of the jump in prices is due to geopolitical events.

Author : Rajdhani Delhi Representative

Rajdhani delhi representative

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