Stock Market Today: Top 10 things to know before the market opens today

February 6, 2023February 6, 2023 Bruce Langford

The market is expected to open in the red as trends in the SGX Nifty indicate a negative opening for the broader index in India with a loss of 22 points.

The BSE Sensex rallied 910 points, or 1.52 percent, to 60,842, while the Nifty50 jumped 244 points, or 1.4 percent, to 17,854 at the close on February 3 and formed a bullish candle on the daily charts with long lower shadow indicating there was a support-based buying along with huge volumes.

As per the pivot charts, we have the key support level for the Nifty at 17,660, followed by 17,593, and 17,483.

If the index moves up, the key resistance levels to watch out for are 17,879, followed by 17,946 and 18,056.

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

A gauge of global stocks dropped more than 1 percent, while US Treasury yields and the dollar gained on Friday after a shockingly strong US jobs report renewed concerns the Federal Reserve may remain aggressive in its path of interest rate hikes as it tries to tame inflation.

The Dow Jones Industrial Average fell 127.93 points, or 0.38 percent, to 33,926.01; the S&P 500 lost 43.28 points, or 1.04 percent, to 4,136.48; and the Nasdaq Composite dropped 193.86 points, or 1.59 percent, to 12,006.96.

Asian Markets

Asian shares eased on Monday after a run of upbeat economic data from the US and globally lessened the risk of recession, but also suggested interest rates would have to rise further and stay up for longer.

In equity markets, MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7 percent, with South Korea down 1 percent. Japan’s Nikkei added 1.1 percent, encouraged by hopes the BOJ would keep policy easy.

SGX Nifty

Trends in the SGX Nifty indicate a negative opening for the broader index in India with a loss of 22 points.

The Nifty futures were trading around 17,817 levels on the Singaporean exchange.

US reports blowout job growth; unemployment lowest since 1969

US job growth accelerated sharply in January while the unemployment rate hit more than a 53-1/2-year low of 3.4 percent, pointing to a stubbornly tight labor market, and a potential headache for Federal Reserve officials as they fight inflation.

The survey of establishments showed nonfarm payrolls surged by 517,000 jobs last month, the most in six months. Economists in a Reuters poll had expected a gain of 185,000.

Data for December was revised higher to show 260,000 jobs added instead of the previously reported 223,000. Employment growth last month was well above the monthly average of 401,000 in 2022.

Results on February 6

Tata Steel, Adani Transmission, AGS Transact Technologies, Balaji Amines, Easy Trip Planners, Infibeam Avenues, JK Paper, Kolte-Patil Developers, LIC Housing Finance, Monte Carlo Fashions, Muthoot Finance, Nuvoco Vistas Corporation, OnMobile Global, Shankara Building Products, SJVN, Tejas Networks, Unichem Laboratories, and Varun Beverages will be in focus on February 6 ahead of their quarterly earnings.

FII and DII data

Foreign institutional investors (FII) sold shares worth Rs 932.44 crore, while domestic institutional investors (DII) purchased shares worth Rs 1,264.74 crore on February 3, as per provisional data available on the NSE.

Foreign portfolio investors in India to pay higher tax on debt securities: Official

Foreign portfolio investors will lose a preferential tax rate on interest from Indian government securities and corporate and foreign currency bonds, a senior tax official said on Saturday.

Foreign portfolio investors have been enjoying a lower 5 percent tax on interest earned on bonds since 2013, making investments in the country more attractive.

Ending this treatment would require them to pay a 20 percent tax on interest income from July 1.

Oil prices edge higher as IEA’s Birol talks up China demand outlook

Oil prices inched up in early trade on Monday after falling around 8 percent last week to more than three-week lows as jitters over major economies outweighed signs of a demand recovery in China, the world’s top oil importer.

Brent crude futures crawled up 16 cents, or 0.2 percent, to $80.10 a barrel at 0022 GMT, while US West Texas Intermediate (WTI) crude futures rose 15 cents, also 0.2 percent higher, to $73.54 a barrel.

India’s forex reserves rises over 6-month high to $576.76 billion

India’s forex reserves jumped to an over six months high in the reporting week ending on January 27 to $576.76 billion.

According to the Weekly Statistical Supplement released by the Reserve Bank of India (RBI) on February 3 showed that forex reserves rises by $3.03 billion to $576.76 billion during the week ending January 27.

The uptick in the foreign exchange reserves is a result of the rise in the Foreign Currency Assets (FCA), which is a major component of the overall reserves.

The FCA rose $2.66 billion to $509.02 billion for the week ending January 27.

Stocks under F&O ban on NSE

The National Stock Exchange has retained Adani Ports on its F&O ban list for February 6 and has removed Ambuja Cements from it.

Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.

ByMoneycontrol