Nifty today: SGX Nifty down 70 points; here’s what changed for market while you were sleeping

Domestic equity markets are set for another opening in the red zone, thanks to poor global cues. US stocks settled sharply down in the overnight trade, whereas Asian peers were also trading with cuts. Rising worries of inflation continued to haunt traders, who are awaiting Jerome Powell’s speech next Friday. Back home, weaker rupee and crude output curbs are denting sentiments. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS


SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 69.5 points, or 0.40 per cent, lower at 17,420.5, signaling that Dalal Street was headed for a negative start on Tuesday.

• Tech View: Nifty50 on Monday fell for the second straight day and formed a bearish candle on the daily chart. This was after the formation of the Bearish Engulfing pattern on Friday. Analysts said the index slipped back below a falling trend line, indicating a failed breakout. They see further weakness ahead.
• India VIX: The fear gauge jumped more than 4 per cent to 19.04 level on Monday over its close at 18.28 on Friday.

Asian stocks open lower
Major Asian stocks opened lower Tuesday after jitters over the speed of rate hikes by the US Federal Reserve drove down Wall Street shares overnight. MSCI’s index of Asia-Pacific shares outside Japan was trading 0.54 per cent lower.

• Japan’s Nikkei tumbled 1.28%
• Australia’s ASX 200 shed 0.61%
• New Zealand’s DJ tanked 1.19%
• South Korea’s Kospi dropped 0.83%
• China’s Shanghai declined 0.27%
• Hong Kong’s Hang Seng fell 0.52%

US stocks dropped sharply
Wall Street ended sharply lower on Monday as investors fretted about a US Federal Reserve gathering later this week in Jackson Hole, Wyoming, that is expected to reinforce a strong commitment by the central bank to stamp out inflation.

• Dow Jones plunged 1.91% to 33,063.61
• S&P 500 tanked 2.14% to 4,137.99
• Nasdaq tumbled 2.55% to 12,381.57

Oil prices fell
Oil prices edged up on Tuesday, after Saudi Arabia warned that OPEC could cut output to correct a recent drop in oil futures.

Brent crude futures rose 32 cents to $96.80 a barrel by 0004 GMT, after a choppy session on Monday. US West Texas Intermediate crude futures rose 37 cents to $90.73 a barrel by 0004 GMT.

FIIs buy shares worth Rs 454 cr
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 453.77 crore, data available with NSE suggested. However, DIIs turned net sellers to the tune of Rs 85.06 crore, data suggests.

Stocks in F&O ban today
Only one stock –

– are under the F&O ban for Tuesday, August 23. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 per cent of the market-wide position limit.

RBI may slow down pace of rate hikes: Deutsche Bank
The Reserve Bank’s rate setting panel is likely to opt for slowing down the pace of hikes and increase the repo rate by 0.25 per cent in September, Deutsche Bank said.

The central bank has already hiked the repo rate by 1.40 per cent in three consecutive actions since May this year, in response to the uncomfortably high inflation which has been consistently breaching the upper end of the tolerance band set by the government to the RBI.

MONEY MARKETS

Rupee: The rupee recovered early losses to close flat at 79.84 against the US dollar on Monday amid a strong greenback overseas and massive sell-off in equities.

10-year bonds: India 10-year bond gained 0.08 per cent to 7.27 after trading in 7.26 – 7.30 range on Monday.