The market is expected to open in the green on October 6 as trends in SGX Nifty indicate a gap-up opening for the broader index in India. The Nifty futures were trading around 17,431 levels on the Singaporean exchange.
On October 4, the BSE Sensex surged 1,277 points, or 2.25 percent, to 58,065, while the Nifty50 jumped 387 points to 17,274 and formed bullish candle on the daily charts.
As per the pivot charts, the key support level for the Nifty is placed at 17,165, followed by 17,056. If the index moves up, the key resistance levels to watch out for are 17,335 and 17,396.
The Indian market was shut on October 5 due to public holiday on account of Dussehra.
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 stocks closed lower on Wednesday, unable to sustain a late-day surge, after data showing strong US labor demand again suggested the Federal Reserve will keep interest rates higher for longer.
The Dow Jones Industrial Average fell 42.45 points, or 0.14%, to 30,273.87, the S&P 500 lost 7.65 points, or 0.20%, to 3,783.28 and the Nasdaq Composite dropped 27.77 points, or 0.25%, to 11,148.64.
Asian Markets
Shares in the Asia-Pacific were mixed on Thursday after Wall Street’s two-day rally fizzled. Japan’s Nikkei 225 gained 0.78%, while the Topix added 0.71%. The Kospi in South Korea rose 0.81% and the Kosdaq was 1.85% higher.
In Australia, the S&P/ASX 200 fell 0.17%. Hong Kong’s Hang Seng index slipped 0.48% after surging around 6% on Wednesday. The Hang Seng Tech index was 1.13% lower. MSCI’s broadest index of Asia-Pacific shares ticked 0.16% higher.
SGX Nifty
Trends in SGX Nifty indicate a gap-up opening for the broader index in India. The Nifty futures were trading around 17,431 levels on the Singaporean exchange as against October 4 close of 17,293 level. The Indian stock market was shut on October 5 on the occasion of Dussehra.
Oil prices rise
Oil prices edged up in early Asian trade on Thursday after OPEC+ agreed to further tighten global crude supply with a deal to slash oil production by about 2 million barrel per day. The agreement between the Organization of Petroleum Exporting Countries and allies including Russia, a group known as OPEC+, would squeeze supplies in an already tight market.
Brent crude futures rose 46 cents, or 0.5%, to $93.83 per barrel by 0027 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up 45, or 0.5%, cents at $88.21 per barrel.
Morgan Stanley says bottom near for emerging-market equities
Having endured a long stretch of losses, stocks in emerging markets and Asia excluding Japan are close to completing their bear-market cycles, according to Morgan Stanley.
It’s highly likely these markets are bottoming amid “abundant” signs of extreme selling, the investment bank’s strategists including Jonathan Garner wrote in note Tuesday. They upgraded emerging-market and Asia ex-Japan stocks to overweight from equal-weight.
The reassessment from Garner and team, which correctly predicted deepening routs in emerging and China markets earlier this year, follows the longest ever peak-to-trough run for the MSCI Emerging Markets Index as a surging dollar and China’s stringent Covid restrictions took a toll.
US private payrolls rise in September; trade deficit narrows sharply
US private employers stepped up hiring in September, suggesting demand for workers remains strong despite rising interest rates and tighter financial conditions. The ADP National Employment report on Wednesday followed on the heels of news on Tuesday that job openings dropped by the most in nearly 2-1/2 years in August.
Private employment rose by 208,000 jobs last month. Data for August was revised higher to show 185,000 jobs created instead of the previously reported 132,000. Economists polled by Reuters had forecast an increase of 200,000 in private payrolls.
US dollar clings to gains as bets on further Fed hikes firm
The dollar fought for a footing in choppy trade on Thursday, with support from upbeat US data and hawkish policymaker comments, while the prospect of higher energy prices helped exporters' currencies and weighed on those of importers.
The dollar rose 1% on the euro and 1.3% on sterling overnight and was trying to hold those gains in bumpy early trade in Asia. The euro has now made two unsuccessful attempts to regain parity this week and last bought $0.9916. Sterling's rebound from record lows has paused just below $1.15.
The US dollar index wobbled 0.06% lower to 110.86, off lows near 110 from earlier in the week, though some distance below last week's 20-year high of 114.78.
Global bond funds see biggest outflows in two decades
Global bond funds saw the biggest outflows in two decades in the first three quarters of this year as hefty interest rate increases by central banks to tame inflation sparked fears of a recession. According to Refinitiv Lipper, global bond funds faced a cumulative outflow of $175.5 billion in the first nine months of this year, the first net sales in that period since 2002.
FII and DII data
Foreign institutional investors (FIIs) remained net buyers to the tune of Rs 1,344.63 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 945.92 crore on October 4, as per provisional data available on the NSE.
OPEC+ agrees deep cuts to oil production despite US pressure
OPEC+ agreed its deepest cuts to oil production since the 2020 COVID pandemic at a Vienna meeting on Wednesday, curbing supply in an already tight market despite pressure from the United States and others to pump more.
The cut could spur a recovery in oil prices that have dropped to about $90 from $120 three months ago on fears of a global economic recession, rising US interest rates and a stronger dollar.
With inputs from Reuters and other agencies