“Stock Market News: Trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 45 points as market remains volatile with the US indices ending in the red and Asian peers posting losses”
The market is likely 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 45 points.
The BSE Sensex fell 335 points to 60,507, while the Nifty50 declined 89 points to 17,765 amid volatility and formed an inside bar and bearish candlestick pattern with longer lower shadow on daily charts which indicates buying interest on declines, but there was higher low formation.
US stocks ended lower on Monday as investors shifted gears after considering the possibility that the Federal Reserve may take longer to start cutting interest rates.
Traders are keeping a close eye on speeches by Fed officials this week, including Chair Jerome Powell on Tuesday, for any change in the central bank’s rhetoric after data last week showed services activity was strong in January as well as strong job growth.
The Dow Jones Industrial Average ended down 35.85 points, or 0.11 percent, at 33,890.16, the S&P 500 lost 25.44 points, or 0.62 percent, to 4,111.04 and the Nasdaq Composite dropped 119.51 points, or 1 percent, to 11,887.45.
Asian Markets
Stocks in the Asia-Pacific were set to trade mixed on Tuesday, after Wall Street extended losses as investors digested last week’s economic data that showed there’s more room for the Federal Reserve to hike rates further.
In Australia, the S&P/ASX 200 fell 0.1 percent as investors await Reserve Bank of Australia’s rate decision. The Nikkei 225 gained 0.34 percent and the Topix rose 0.31 percent. The Kospi in South Korea was up 0.27 percent.
SGX Nifty
Trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 45 points. The Nifty futures were trading around 17,806 levels on the Singaporean exchange.
Oil rises 1% in choppy trade on China demand hopes
Oil prices edged higher in choppy trading on Monday as markets weighed a return in demand from China against supply concerns and fears of slower growth in major economies curbing consumption.
Brent futures for April delivery rose $1.05, or 1.3 percent, to $80.99 a barrel, after trading between $79.10 and $81.25. West Texas Intermediate crude (WTI) gained 72 cents, or 1 percent, to $74.11 per barrel, after hitting a high of $74.41 and a low of $72.25.
Indian IT services industry’s growth pace may slow down in near to mid term: ICRA
The growth momentum of Indian IT services industry is likely to slow down in the near to mid term as macroeconomic headwinds trigger lower discretionary IT spends, ICRA said on Monday. Ratings agency ICRA sees lower hiring by the IT service companies in the near term given that excess capacities were added in FY2022 and expects moderation in demand compared to previous fiscals amid macroeconomic headwinds.
Indian IT services companies have witnessed a moderation in growth in the last two quarters in constant currency terms owing to the base effect and evolving macroeconomic headwinds in key markets of the US and Europe. Due to these headwinds, the decision-making towards discretionary IT spending has seen a slight deferment, while the cost optimisation deals continue to generate stable demand, it noted.
Tata Steel declares a surprise net loss of Rs 2,224 crore in Q3
Tata Steel has reported a surprise consolidated net loss of Rs 2,223.84 crore for the quarter ended December 2022, against a profit of Rs 9,572.67 crore in the same quarter last year. The steelmaker in an exchange filing said its revenue from operations fell 6.08 percent year on year (YoY) to Rs 57,083.56 crore from Rs 60,783.11 crore.
According to a poll of brokerage firms conducted by Moneycontrol, the company’s net profit was expected to tank 88 percent YoY and 24.3 percent QoQ to Rs 1,146 crore in the quarter under review.
Results on February 7
Bharti Airtel, Hero MotoCorp, Ambuja Cements, Adani Ports and Special Economic Zone, Adani Green Energy, NDTV, Aditya Birla Fashion and Retail, Astral, Barbeque-Nation Hospitality, Bharat Dynamics, Computer Age Management Services, Deepak Nitrite, Gujarat Fluorochemicals, GSK Pharma, Kalyan Jewellers India, Motherson Sumi Wiring India, Navin Fluorine International, NHPC, Phoenix Mills, Ramco Cements, Rashtriya Chemicals & Fertilizers, Sobha, Thermax, and Wonderla Holidays will declare their quarterly earnings on January 7.
FII and DII data
Foreign institutional investors (FII) sold shares worth Rs 1,218.14 crore, while domestic institutional investors (DII) purchased shares worth Rs 1,203.09 crore on February 6, as per provisional data available on the NSE.
Dollar extends rebound as US data supports
The dollar jumped to a four-week high against the euro on Monday, as last week’s blockbuster US jobs report raised the likelihood of the US Federal Reserve keeping on with its inflation-fighting interest rate hikes for longer.
The euro slipped 0.6 percent against the dollar to $1.0724, its lowest since January 9, following a 1 percent drop on Friday.
Stocks under F&O ban on NSE
The National Stock Exchange has retained Adani Ports on its F&O ban list for February 7. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
With inputs from Reuters and other agencies