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 85 points.
The BSE Sensex plunged 872 points or 1.5 percent to 58,774, while the Nifty50 fell 268 points or 1.5 percent to 17,491 and formed a bearish candlestick pattern on the daily charts, following the formation of a bearish engulfing pattern in the previous session.
As per the pivot charts, the key support level for the Nifty is placed at 17,409, followed by 17,327. If the index moves up, the key resistance levels to watch out for will be 17,631 and 17,772.
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
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. All 11 S&P 500 sector indexes declined, led lower by consumer discretionary, down 2.84 percent, followed by a 2.78 percent loss in information technology.
The S&P 500 declined 2.14 percent to end the session at 4,137.99 points. The Nasdaq declined 2.55 percent to 12,381.57 points, while Dow Jones Industrial Average declined 1.91 percent to 33,063.61 points.
Asian Markets
Asia-Pacific traded lower early Tuesday morning after major indexes on Wall Street finished their worst day since June amid mounting rate hike concerns. Japan’s Topix traded 0.82 percent lower, Nikkei 225 fell 1 percent, while South Korea’s Kospi was down 0.4 percent. S&P/ASX 200 declined 0.46 percent.
SGX Nifty
Trends in SGX Nifty indicate a negative opening for the broader index in India with a loss of 85 points. The Nifty futures were trading around 17,405 levels on the Singaporean exchange.
Oil prices rise after Saudi says OPEC could cut output
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 when they dropped by more than $4 before paring losses to trade near flat. US West Texas Intermediate crude futures rose 37 cents to $90.73 a barrel by 0004 GMT.
RBI likely to slow down pace of rate hikes, may raise rates by 0.25% in Sept: 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 on Monday. The central bank has hiked the repo rate by 1.40 percent in three consecutive rounds since May, to tame down an uncomfortably high inflation which has been consistently breaching the upper end of the tolerance band set by the government to the RBI.
In a report, the Germany-based bank said the RBI will respond with a slower pace of rate hikes from here, basing the expectation on the recently released minutes of the last meeting of the Monetary Policy Committee (MPC). It pointed to Governor Shaktikanta Das' statement, where he wrote that actions will be "calibrated, measured and nimble" as one of the most important factors.
UK inflation to top 18% in early 2023, Citi warns
British consumer price inflation is set to peak at 18.6 percent in January, more than nine times the Bank of England's target, an economist at U.S. bank Citi said on Monday, raising his forecast once again in light of the latest jump in energy prices.
Energy regulator Ofgem is due to set out new maximum tariffs for households on Friday, which will take effect in October. Citi forecasts Ofgem will raise the tariff cap to the equivalent of 3,717 pounds from October, with further increases to 4,567 pounds in January and 5,816 pounds in April 2023.
China cuts lending benchmarks to revive faltering economy
China cut its benchmark lending rate and lowered the mortgage reference by a bigger margin on Monday, adding to last week's easing measures, as Beijing boosts efforts to revive an economy hobbled by a property crisis and a resurgence of Covid-19 cases.
The People's Bank of China (PBOC) is walking a tightrope in its efforts to revive growth. Offering too much of stimulus could add to inflation pressures and risk capital flight as the Federal Reserve and other economies raise interest rates aggressively.
The one-year loan prime rate (LPR) was lowered by 5 basis points (bps) to 3.65 percent at the central bank's monthly fixing on Monday, while the five-year LPR was slashed by 15 bps to 4.30 percent.
Japan's August factory activity grows at slowest pace in 19 months - flash PMI
Japan's factory activity growth slowed to a 19-month low in August as output and new order declines deepened, amid growing pressure from persistent rises in raw material and energy costs and weakening global demand. Activity in the services sector contracted for the first time in five months, as a fall in new business raised worries about lacklustre demand at home.
The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) fell to a seasonally adjusted 51.0 in August from a 52.1 final in July, marking the slowest expansion since January last year. The 50-mark separates contraction from expansion.
FII and DII data
Foreign institutional investors (FIIs) have net sold shares worth Rs 453.77 crore, while domestic institutional investors (DIIs) net offloaded shares worth Rs 85.06 crore on August 22, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
One stock - Tata Chemicals - is under the NSE F&O ban list for August 23. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
With inputs from Reuters and other agencies