PremiumUS stock indexes dropped on Monday, with the S&P 500 on course to confirm a correction as the prospect of a Russian attack on Ukraine posed as a double whammy for investors already worried about aggressive policy tightening by the Federal Reserve. In India, shares of companies like Maruti Suzuki India, Cipla, Allsec Technologies, APL Apollo Tubes, Emkay Global Financial Services, Federal Bank, Finolex Industries, Indiabulls Real Estate, ICRA, Macrotech Developers, Max India, Pidilite Industries, Raymond, RPG Life Sciences, Star Cement, Torrent Pharmaceuticals, and United Spirits will be in focus as they announce their December quarter earnings today.
Bitcoin gained after tumbling to its lowest level in six months in the previous sessions. The largest cryptocurrency was marginally higher at $36,013 after earlier dropping to $32,951, its lowest price since July 23. That took losses from its all-time high of $69,000 hit in November past 50%. Bitcoin is down over 21% in 2022 (year-to-date) so far.
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Japan's Nikkei index touched a five-month low on Tuesday, weighed down by investor caution over the situation in Ukraine and a potential faster-than-expected U.S. rate hike ahead of the Federal Reserve policy meeting due later in the day.
By 0213 GMT, the Nikkei share average fell 1.9% to 27,061.36, after dropping as much as 2.1% to 27,006.37, its lowest since Aug. 20. The broader Topix lost 2.02% to 1,891.00.
Wall Street bounced back from a steep sell-off to close higher overnight, with bargain hunters pushing the indexes into a positive territory.
The rupee on Monday slumped by 17 paise to close at a more than three-week low of 74.60 against the US dollar due to high crude oil prices, forex outflows and heavy losses in domestic equities amid growing geopolitical worries. Forex traders said the strength of the American currency in the overseas market and weak appetite for riskier assets also dragged down the local unit. Moreover, market participants are now eyeing the US Fed's January 25-26 meeting for further cues.
PSU metal Nalco and auto stock continue to be among two stocks that have been put under the ban for trade on Tuesday, January 25, 2022 under the futures and options (F&O) segment by the National Stock Exchange (NSE). These securities have been put on ban under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE.
On the other hand, Vodafone Idea, Indiabulls Housing Finance, and Bharat Heavy Electricals Limited (BHEL) that were was part of the list in the previous sessions, are out of the list of F&O stock ban for today by the stock exchange.
4 stocks to buy or sell today — 25th January
Oil rose after the biggest one-day drop this year as traders focused on the still-positive demand outlook and appetite for risk rebounded.
West Texas Intermediate climbed toward $84 a barrel after shedding more than 2% on Monday, when U.S. equities swooned then recovered. The volatile trading comes as the Federal Reserve prepares the ground for interest-rate increases, and Russian troops mass on the border with Ukraine. In recent months, oil bears have retreated as speculators turn more bullish amid lower stockpiles.
Crude rallied to a seven-year high last week as worldwide consumption recovered from the impact of the pandemic, eroding inventories. U.S. oilfield services giant Halliburton Co. said it expected the environment to remain supportive as it reported a jump in profit and higher dividend on Monday.
U.S. equity futures and Asian stocks declined Tuesday after breathtaking volatility on Wall Street stoked by concerns over Federal Reserve policy tightening and geopolitical tension.
S&P 500 and Nasdaq 100 contracts retreated about 1%, while an Asia-Pacific share gauge hit the lowest point since November 2020. U.S. stocks erased a 4% drop to close up Monday on high volumes in a wild turnaround from a selloff that rivaled any of the last two years.
Treasuries were mixed, with the benchmark 10-year yield inching lower. Oil stabilized after getting swept up in the bout of risk aversion.
Markets are being rattled by the prospect of a Fed interest-rate hiking cycle and balance-sheet reduction to tackle inflation. Escalating U.S.-Russia tension over Ukraine has also encouraged demand for havens. The dollar held gains.
In Australia, bonds slid after stronger-than-expected inflation data as traders boosted bets on rate increases. Singapore’s dollar strengthened on surprise monetary-policy tightening to damp price pressures.
Global shares are enduring their worst month since the pandemic roiled markets, buffeted by risks from ebbing Fed stimulus as well as an uneven start to the company earnings season. The question now is whether the slide is a buying opportunity or portends wider stress across more asset classes.
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