SGX Nifty up 30 points; here's what changed for market while you were sleeping

Bucking the muted global cues, Indian benchmark indices were set for a positive trade at open. On the contrary, Asian peers were in deep red, whereas US Stocks settled mostly lower during the overnight trade. Recession fears spooked the traders across the globe and firm dollar dented the sentiments further. Back home, India Inc earnings will continue to guide the market. Here's breaking down the pre-market actions:


STATE OF THE MARKETS

SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 27.5 points, or 0.16 per cent, per cent higher at 16,967.5, signaling that Dalal Street was headed for a positive start on Wednesday.

• India VIX: The fear gauge further rose on Tuesday, ending 4.4 per cent higher at 20.4900 points, as risk aversion among investors prevailed amid weak global sentiment.

Asian stocks open in red
Asian stocks opened lower on Wednesday after a mixed close on Wall Street following the IMF's downcast economic outlook, with investors remaining cautious about the impact of inflation. MSCI's index of Asia-Pacific shares outside Japan was trading 0.87 per cent lower.

• Japan's Nikkei dropped 0.18%
• Australia's ASX 200 shed 0.04%
• New Zealand's DJ declined 1.02%
• South Korea's Kospi tanked 0.30%
• China's Shanghai plunged 1.09%
• Hong Kong's Hang Seng fell 2.25%

US stocks settled mostly lower
The S&P 500 and Nasdaq ended lower on Tuesday, with indications from the Bank of England that it would support the country's bond market for just three more days adding to market jitters late in the session. Trading was volatile, with investors cautious ahead of key US inflation data and the start of third-quarter earnings later this week.

• Dow Jones gained 0.12% to 29,239.19
• S&P 500 dropped 0.65% to 3,588.84
• Nasdaq tumbled 1.10% at 10,426.19

Dollar at 24-year peak to yen
The dollar rose to a fresh 24-year high against the yen on Wednesday, moving above levels that prompted intervention by Japanese officials last month, as traders braced for US inflation data and its impact on further Federal Reserve rate hikes.

• Dollar index was firm at 113.52
• Euro was slumped to $0.9670
• Pound edged lower to $1.0947
• Yen was struggling at 145.90 per dollar
• Yuan exchanged hands at 7.1839 against the greenback

Oil prices extend fall
Oil prices fell for a third straight session on Wednesday as investors fretted about a hit to fuel demand from growing risks of a global recession and tightening COVID-19 curbs in China.

Brent crude futures fell 51 cents, or 0.5 per cent, to $93.78 a barrel by 0033 GMT. US West Texas Intermediate crude was at $88.66 a barrel, down 69 cents, or 0.8 per cent.

FII action
Foreign portfolio investors (FPIs) sold heavily in the domestic market on Tuesday. Net-net, they sold shares worth Rs. 4,613 crores, provisional data available with NSE suggested. However, DIIs remained net buyers of stocks to the tune of Rs 2,431 crores.

Stocks in F&O ban today
Three Stocks- , and India Cements- are under the F&O ban for Wednesday, October 12. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 per cent of the market-wide position limit.

Rupee: The rupee rebounded from its all-time low to close 19 paise higher at 82.21 against the US dollar on Tuesday amid softening crude oil prices.

MACRO NEWS
The International Monetary Fund on Tuesday warned of a recession in 2023 and cut the global growth projection for 2023 by 20 basis points to 2.7 per cent. It further said that there is a “25 per cent probability” that it could fall below 2.0 per cent.

In its latest World Economic Outlook report, the international agency has left the US’ GDP growth projection for 2023 unchanged at 1.0 per cent, but for China, it has cut it by 20 bps to 4.4 per cent.

For India, the IMF has cut the GDP growth estimate by a sharp 60 bps to 6.8 per cent for 2022-23 (April-March), and this projection is about 20 bps lower than the Reserve Bank of India’s estimate.

Earnings Wednesday
14 companies are scheduled to report earnings for the quarter ended September. and are among the major ones.