The market is expected 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 43 points.
The BSE Sensex fell nearly 1,100 points to 58,841, while the Nifty50 plunged nearly 350 points to 17,531 and formed bearish candlestick pattern on the daily charts at the close on Friday. If we go the trade of last three days, there was Dark Cloud Cover pattern formation, indicating further bearishness in the market.
As per the pivot charts, the key support level for the Nifty is placed at 17,412, followed by 17,293. If the index moves up, the key resistance levels to watch out for are 17,735 and 17,939.
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
US stocks ended in the red on Friday, falling to two-month lows as a warning of impending global slowdown from FedEx hastened investors' flight to safety at the conclusion of a tumultuous week. All three major US stock indexes slid to levels not touched since mid-July, with the S&P 500 closing below 3,900, a closely watched support level.
The Dow Jones Industrial Average fell 139.4 points, or 0.45 percent, to 30,822.42, the S&P 500 lost 28.02 points, or 0.72 percent, to 3,873.33 and the Nasdaq Composite dropped 103.95 points, or 0.9 percent, to 11,448.40.
Asian Markets
Shares in the Asia-Pacific were mixed on Monday ahead of major central bank meetings this week. The S&P/ASX 200 in Australia was 0.11% higher, while South Korea’s Kospi opened higher before falling 0.45%. Japan’s market was closed for a holiday Monday.
SGX Nifty
Trends in SGX Nifty indicate a positive opening for the broader index in India with a gain of 43 points. The Nifty futures were trading around 17,606 levels on the Singaporean exchange.
Government reduces windfall tax on crude oil to Rs 10,500 from Rs 13,000 a tonne
The government has reduced windfall tax on locally produced crude oil to Rs 10,500 from Rs 13,000 a tonne, according to a circular issued by Ministry of Finance on September 16. Additionally, it has also reduced tax export of diesel and ATF.
The decision came at the fifth fortnightly review after the Centre was "satisfied that it is necessary in the public interest to do so." The notification will come into force from tomorrow September 17 . The cess on the export of diesel was reduced to Rs 6.50 per litre from Rs 13.5, while the tax on Aviation Turbine Fuel (ATF) exports was cut to Rs 8.5 a litre, from Rs 9 per litre, according to the circular.
Goldman cuts US Growth Forecast for 2023 after rate path change
Goldman Sachs Group Inc. cut its US economic growth estimates for 2023 after recently boosting its predictions for Federal Reserve interest rate hikes. US gross domestic product will increase 1.1 percent in 2023, economists including Jan Hatzius wrote in a note Friday, compared with a forecast of 1.5 percent previously. The projection for 2022 was left unchanged at 0 percent.
Goldman raised its federal funds rate forecast by 75 basis points over the last two weeks for a terminal rate forecast of 4 percent to 4.25 percent by the end of 2022.
Oil prices climb on weak dollar, supply concerns
Oil prices climbed during early Asian trade on Monday as a weaker dollar and supply concerns ahead of the European Union embargo on Russian oil in December offset fears of a global recession that could dampen fuel demand.
Brent crude futures rose $1.15, or 1.3%, to $92.50 a barrel by 0049 GMT after settling up 0.5 percent on Friday. US West Texas Intermediate crude was at $86.16 a barrel, up $1.05, or 1.2 percent.
FII and DII data
Foreign institutional investors (FIIs) have net sold shares worth Rs 3,260.05 crore, while domestic institutional investors (DIIs) net offloaded shares worth Rs 36.57 crore on September 16, as per provisional data available on the NSE.
India's CAD likely to remain within 3% of GDP: RBI bulletin
India's current account deficit (CAD), a key indicator of balance of payment of a country, is likely to remain within 3 percent of the GDP in 2022-23 as against 1.2 percent during the last fiscal, according to an article published in the Reserve Bank's bulletin. The widening trade deficit, or the gap between the value of imports and exports, puts pressure on the balance of payments. India's trade deficit during the first five months of 2022-23 widened to $124.5 billion from $54 billion in the previous corresponding period. In the entire fiscal 2021-22, the trade deficit was $189.5 billion.
The article titled 'State of the Economy' said most importantly, future prices for crude oil contracts over the next few months have softened. International prices of vegetable oils and fertilisers are also looking more benign than before. There are other bright spots too, it said, and added that in August, exports of petroleum products have rebounded on-year.
India's forex reserves down $2.23 billion to $550.87 billion
The country's foreign exchange reserves declined by $2.234 billion to stand at $550.871 billion for the week ended September 9, the Reserve Bank of India (RBI) said on Friday. In the previous reporting week, the reserves had dropped by $7.941 billion to $553.105 billion.
The fall in the reserves during the reporting week was on account of a dip in the foreign currency assets (FCAs), a major component of the overall reserves, according to the Weekly Statistical Supplement released by the RBI. The FCAs decreased by $2.519 billion to $489.598 billion in the reporting week.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. The value of the gold reserves increased by $340 million to $38.644 billion, the data showed.
Stocks under F&O ban on NSE
Four stocks - Indiabulls Housing Finance, India Cements, PVR, and RBL Bank - are under the NSE F&O ban list for September 19. 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