Updated : 2021-02-24 08:04:09
The Indian market is likely to open higher on Wednesday as the trend on SGX Nifty indicates a positive start for the broader index in India amid relatively stronger global cues. The Nifty futures were trading 61.50 points or 0.42 percent higher at the 14,836.00 level on the Singaporean Exchange at 7:50 am.
1. Wall Street: A late burst of buying erased much of an early slide on Wall Street Tuesday. The S&P 500 managed a gain of 0.1 percent. The tech-heavy Nasdaq lost 0.5 percent, having clawed back most of an early drop of as much as 3.9 percent. The S&P 500 rose 4.87 points, or 0.1 percent, to 3,881.367. The Dow Jones Industrial Average rose 15.66 points, or less than 0.1 percent, to 31,537.35.
2.. Asian equities: Asian equities opened lower on Wednesday on concerns about rising interest rates and rich equity valuations and following a downdraft in US and European overnight trading. In early Asia trade, Australia’s S&P/ASX 200 was down 0.5 percent, South Korea’s KOSPI shed 0.4 percent while Japan’s Nikkei 225 was down 0.9 percent. Hong Kong’s Hang Seng index futures were down 0.37 percent.
3. D-Street: Indian indices ended flat on Tuesday as gains in metal and energy stocks were capped by losses in banking and financial space like heavyweights Kotak Bank and HDFC twins. The Sensex ended 7 points higher at 49,751 while the Nifty rose 32 points to settle at 14,708. Broader markets, however, outperformed benchmarks with the midcap and smallcap indices up around 1 percent each.
4. Crude oil: Oil prices jumped by more than $1 at one point, underpinned by optimism over COVID-19 vaccine rollouts and lower output as US supplies were slow to return after a deep freeze in Texas shut in crude production last week. Brent crude futures rose 13 cents to settle at $65.37 a barrel, while US crude futures fell 3 cents to settle at $61.67 a barrel. Brent and US crude rose in after-hours trade.
5. Rupee: The rupee slipped from the day’s highest level but managed to eke out a marginal gain of 3 paise at 72.46 against the US dollar on Tuesday, tracking muted domestic equities and stronger greenback against key rivals. At the interbank forex market, the local unit opened at 72.36 against the US dollar and witnessed an intra-day high of 72.31 and a low of 72.46.
6. Gold: Gold prices on Tuesday jumped by Rs 337 to Rs 46,372 per 10 grams reflecting overnight gains in global gold prices, according to HDFC Securities. The price of the precious metal had closed at Rs 46,035 per 10 gram in the previous session on Monday.
8. COVID-19: According to government figures, 16 out of the 36 Indian states have witnessed a spike in cases in the past week with the situation demanding thorough monitoring in at least seven states/union territories.
9. SEBI: Seeking to strengthen the risk management framework, Sebi will put in place pre-expiry margins on cash-settled contracts wherein the underlying commodities are deemed to be susceptible to possible near zero or negative prices. The latest decision — to be effective from April 1, 2021 — is aimed at encouraging a significant reduction of open interest as the contract approaches the expiry date.
10. Fed Policy: Federal Reserve Chair Jerome Powell, pushing back on suggestions that loose monetary policy risked unleashing inflation and financial risks in what may be an emerging economic boom, said the central bank would keep its attention focused on getting Americans back to work as a vaccine-related recovery proceeds.