Stock Market Today: Top 10 things to know before the market opens on 17th May
The market is likely to open marginally lower on Wednesday as the SGX Nifty indicates a negative start for the broader index with a loss of 40 points after opening the session at 18,289.
SGX futures touched a high of 18,418 in early trade on May 17.
The BSE Sensex lost 413 points to close at 61,932 in the previous session, while the Nifty 50 closed 112 points lower at 18,286.
The Nifty50 traded comfortably higher than its 200-day moving average of 17,954 and is expected to build on the recent momentum.
The pivot charts indicate that the Nifty may get support at 18,264, followed by 18,224 and 18,160.
If the index advances, 18,392 would be the initial key resistance level to watch out for, followed by 18,432 and 18,496.
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.
SGX Nifty
The SGX Nifty indicates a negative start for the broader index with a loss of 40 points on Wednesday.
SGX futures stood at 18,289.
US Markets
US stocks closed lower on Tuesday and the benchmark Treasury yields extended their rise as mixed economic data, weak corporate results and ongoing debt ceiling negotiations in Washington dampened investor risk appetite.
While all three major US stock indices ended down, the tech-heavy Nasdaq’s losses were held in check by momentum megacaps including Amazon.com, Alphabet Inc and Microsoft Corp.
President Joe Biden and House of Representatives Speaker Kevin McCarthy met to try to hammer out details of an agreement to raise the US debt ceiling to avoid a catastrophic default in the face of a looming deadline.
European Markets
Europe’s benchmark Stoxx 600 index closed 0.4 percent lower on Tuesday after trading near the flatline for most of the session.
US stocks pulled European markets lower, with the Dow Jones Industrial Index falling around 200 points following a lackluster forecast from Home Depot.
The UK’s FTSE 100 fell 0.34 percent, dragged down by declines in mining stocks. France’s CAC 40 ended the day down 0.16 percent while Germany’s DAX dipped 0.12 percent.
Asian markets
Asia-Pacific markets are trading mixed as the region looks to economic data from several countries, including Japan and Australia. Japan’s Nikkei 225 was up 0.45 percent in early trade, while the Topix was up 0.11 percent, as the index maintained in levels at the highest since August 1990.
This comes as the country’s first quarter gross domestic product grew 1.6 percent on an annualized basis, higher than the 0.7 percent expected by economists polled by Reuters. South Korea’s Kospi traded close to the flatline on Wednesday, while the Kosdaq saw a 0.49 percent gain.
In Australia, the S&P/ASX 200 slipped 0.79 percent, dragged by mining stocks as investors await the nation’s wage price index later today. In Hong Kong, futures for the Hang Seng index were at 19,884, lower than the HSI’s last close of 19,978.25.
Janet Yellen warns US default could trigger recession, ‘break’ financial markets
Treasury Secretary Janet Yellen on Tuesday warned that a US default on government debt would leave millions of Americans without income payments, potentially triggering a recession that destroys many American jobs and businesses.
Yellen said the unprecedented economic and financial crisis would be exacerbated by possible disruptions to the federal government’s operations, including air traffic control, law enforcement, border security and national defense, and telecommunications systems.
It is very conceivable that we’d see a number of financial markets break – with worldwide panic triggering margin calls, runs and fire sales.”
Tube Investments consolidated net profit zooms 74% YoY
The company’s consolidated net sales came in at Rs 3,778.24 crore in the March quarter, up 10.64 percent YoY.
The revenue growth would have been higher if not for lower than-estimated growth in the engineering business which forms 63 percent of total revenues, coupled with a sharp decline in the mobility business.
Oil prices
Oil futures edged lower on Tuesday as weaker-than-expected economic data in China offset a forecast of higher global demand from the International Energy Agency (IEA).
Brent crude futures last dropped 26 cents to $74.97 a barrel, while US West Texas Intermediate crude edged down 17 cents to $70.94.
Both benchmarks rose more than 1 percent on Monday, reversing a three-session losing streak.
Dollar
The Dollar index traded 0.01 percent higher in futures at 102.57, whereas the value of one dollar hovered near Rs 82.29.
Gold
Gold fell below $2,000 on Tuesday after US economic data and hawkish remarks from Federal Reserve officials drove bets that interest rate cuts may be delayed, while traders kept an eye on the US debt-ceiling talks.
Spot gold was down 1.47 percent at $1,990.89 per ounce, while US gold futures fell 1.38 percent to $1,994.70.
FII and DII
Foreign institutional investors (FII) bought shares worth Rs 1,406.86 crore, whereas domestic institutional investors (DII) sold shares worth Rs 886.17 crore on May 16, provisional data from the National Stock Exchange showed.
ByMoneycontrol
