Stock Market Today: Top 10 things to know before the market opens
The market is likely to open in the red on February 10 as trends in the SGX Nifty indicate a negative opening for the broader index in India with a loss of 102 points.
In the previous session, the BSE Sensex rose 142 points to settle at 60,806, while the Nifty50 climbed 22 points to end at 17,893 after taking a good support at 17,800 level for yet another session, forming Doji pattern on the daily charts as the closing was near the opening levels indicating indecision among bulls and bears about future market trend.
As per the pivot charts, we have the key support level for the Nifty at 17,811, followed by 17,779, and 17,726. If the index moves up, the key resistance levels to watch out for are 17,916, followed by 17,948 and 18,000.
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 which could impact Indian as well as international markets:
US Markets
US stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo.
The Dow Jones Industrial Average fell 249.13 points on Thursday, or 0.73 percent, to 33,699.88, the S&P 500 lost 36.36 points, or 0.88 percent, to 4,081.5 and the Nasdaq Composite dropped 120.94 points, or 1.02 percent, to 11,789.58.
Asian Markets
Asia-Pacific markets traded mixed on Friday, following moves on Wall Street and ahead of China’s inflation data. Economists polled by Reuters are expecting to see core prices in China rise by 2.2 percent on an annualized basis.
In Australia, the S&P/ASX 200 fell 0.68 percent in its first hour of trade as investors await the Reserve Bank of Australia’s statement on monetary policy.
The Nikkei 225 rose 0.1 percent while the Topix shed 0.23 percent. The Kospi in South Korea fell 0.76 percent.
SGX Nifty
Trends in the SGX Nifty indicate a negative opening for the broader index in India with a loss of 102 points. The Nifty futures were trading around 17,828 levels on the Singaporean exchange.
Oil falls as earthquake impact on crude eases, rate hike fears rise
Crude prices eased on Thursday as oil infrastructure appeared to have escaped serious damage from the earthquake that devastated parts of Turkey and Syria, while US inventories swelled and investors worried about Federal Reserve rate hikes.
Brent crude settled at $84.50 a barrel, losing 59 cents, or 0.7 percent.
US West Texas Intermediate (WTI) crude futures settled at $78.06 a barrel, down 41 cents, or 0.5 percent. Both benchmarks have gained more than 5 percent so far this week.
US weekly jobless claims increase, labor market remains tight
The number of Americans filing new claims for unemployment benefits increased more than expected last week, but the underlying trend continued to point to a tight labor market.
The jobs market has remained resilient despite growing economic headwinds from the Federal Reserve’s interest rate increases.
While labor market strength keeps the US central policy on its monetary policy tightening path, it also suggests that a much anticipated recession is nowhere near.
Initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 for the week ended Feb. 4, the Labor Department said on Thursday.
That was the first increase in claims since the second last week of December. Economists polled by Reuters had forecast 190,000 claims for the latest week.
S&P warns of possible economic blow, hit to Japan Inc from BOJ rate hike
A future Bank of Japan (BOJ) interest rate hike could affect the country’s sovereign debt rating if firms struggle to absorb rising funding costs, an official at S&P Global Ratings said on Thursday.
Higher borrowing costs could also lead to a downturn in long-term economic growth, S&P said.
Japanese bond yields have crept up on market expectations the BOJ will phase out its yield control policy and start raising interest rates under a new governor who succeeds incumbent Haruhiko Kuroda in April.
While further rises in long-term interest rates could increase Japan’s already large debt burden, such factors are already taken into account in the current “A+” sovereign debt rating, said Kim Eng Tan, senior director of S&P’s sovereign ratings team in Asia-Pacific.
Results on February 10
Mahindra and Mahindra, ABB India, PB Fintech, Abbott India, Alkem Laboratories, Ashoka Buildcon, Astrazeneca Pharma, BEML, BHEL, Dilip Buildcon, Delhivery, EIH, Glenmark Pharmaceuticals, JK Lakshmi Cement, KFin Technologies, Lemon Tree Hotels, Metropolis Healthcare, NALCO, Info Edge India, and Oil India will be in focus ahead of quarterly earnings on February 10.
FII and DII data
Foreign institutional investors (FII) sold shares worth Rs 144.73 crore, while domestic institutional investors (DII) offloaded shares worth Rs 205.25 crore on February 9, as per provisional data available on the NSE.
US dollar falters as Fed outlook weighs
The US dollar fell across the board on Thursday, moving in line with lower Treasury yields, as investors stuck to their views that the Federal Reserve does not need to raise interest rates any more than it should as inflation is starting to get under control.
The euro , the biggest component in the dollar index, climbed 0.2 percent as well to $1.0733, while sterling rose 0.3 percent against the greenback to $1.2114 , with both boosted by improving risk sentiment across markets.
The dollar rose 0.1 percent against the Japanese yen to 131.575 yen .
Stocks under F&O ban on NSE
The National Stock Exchange has retained Ambuja Cements and Indiabulls Housing Finance to its F&O ban list for February 10.
Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
ByMoneycontrol
