The market is expected to open in the red today as trends in the SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 143 points.
The BSE Sensex dropped over 200 points to 60,906, while the Nifty50 fell 63 points to 18,083 and formed a Bearish Belt Hold kind of pattern on the daily charts.
As per the pivot charts, the key support level for the Nifty is placed at 18,054, followed by 18,023 and 17,973. If the index moves up, the key resistance levels to watch out for are 18,153 followed by 18,184 and 18,233.
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:
Fed unleashes another big rate hike of 75 bps but hints at a pullback
The Federal Reserve pumped up its benchmark interest rate Wednesday by three-quarters of a point for a fourth straight time but hinted that it could soon reduce the size of its rate hikes.
The Fed’s move raised its key short-term rate to a range of 3.75 percent to 4 percent, its highest level in 15 years. It was the central bank’s sixth rate hike this year — a streak that has made mortgages and other consumer and business loans increasingly expensive and heightened the risk of a recession.
The Fed’s statement Wednesday was released after its latest policy meeting. Many economists expect Chair Jerome Powell to signal at a news conference that the Fed’s next expected rate hike in December may be only a half-point rather than three-quarters.
US Markets
US stocks ended sharply lower on Wednesday, as comments from Fed Chair Jerome Powell shattered initial optimism over a Fed policy statement that raised interest rates by 75 basis points but signalled that smaller rate hikes may be on the horizon.
In a volatile trading session, equities initially moved higher in the wake of the hike by the Fed, the fourth straight increase from the central bank of that magnitude as it attempts to bring down stubbornly high inflation.
The Dow Jones Industrial Average fell 505.44 points, or 1.55 percent, to 32,147.76, the S&P 500 lost 96.41 points, or 2.50 percent, to 3,759.69 and the Nasdaq Composite dropped 366.05 points, or 3.36 percent, to 10,524.80.
Asian Markets
Asian share markets slid on Thursday after the US Federal Reserve laid the groundwork for a protracted tightening campaign that torpedoed market hopes for a pause, sank bonds and lifted the dollar.
MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.9 percent, with South Korea down 1.5 percent. Japan's Nikkei was closed for a holiday, but futures were trading around 350 points below Wednesday's cash close.
SGX Nifty
Trends in SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 143 points. The Nifty futures were trading around 18,019 levels on the Singaporean exchange.
Services sector boosts US private payrolls in October
US private payrolls increased more than expected in October, offering more evidence of labor market resilience and suggesting that the Federal Reserve could continue to aggressively raise interest rates for a while.
The pick-up in private hiring shown in the ADP National Employment report on Wednesday was concentrated in the services sector, specifically the leisure and hospitality industry. But rapidly rising borrowing costs appeared to weigh on hiring in the goods-producing sector, with factories shedding jobs.
The services sector added 247,000 jobs, with the leisure and hospitality industry accounting for 210,000 positions. Payrolls in the trade, transportation and utilities industry increased by 84,000 jobs.
Results on November 3
HDFC, Hero MotoCorp, Hindustan Petroleum Corporation, Vodafone Idea, Adani Enterprises, Ajanta Pharma, Amara Raja Batteries, Adani Total Gas, Adani Wilmar, Bank of India, Blue Star, Coromandel International, Devyani International, Indian Bank, JK Lakshmi Cement, Raymond, SRF, and Welspun Corp will be in focus ahead of September FY23 quarter earnings on November 3.
FII and DII data
Foreign institutional investors (FIIs) have net-bought shares worth Rs 1,436.30 crore, whereas domestic institutional investors (DIIs) net-sold shares worth Rs 1,378.12 crore on November 2, as per provisional data available on the NSE.
Dollar gains as traders gird for higher US rates
The dollar was on the front foot on Thursday after Federal Reserve Chair Jerome Powell signalled US rates would likely rise further than expected, disappointing traders' hopes for a change in tone, and shifting the focus to Friday's jobs data.
The dollar hit a week-high of $0.9810 per euro in early Asia trade and is eying its best week in more than a month, although a Bank of England meeting and US labour data loom before the close of trade in New York on Friday. Japan's yen was notably firm in the face of dollar gains, and has held at 147.90 per dollar, prompting speculation of possible help from official intervention.
The US dollar index stood at 112.13, its highest in seven sessions. China's yuan was hovering near record lows in offshore trade at 7.3408 per dollar, and other Asian currencies were under pressure.
World's top bankers expect markets to stay turbulent
Central banks will get inflation under control, but there will be turbulence in the near-term due to monetary tightening and geopolitical risks, top bankers said at a summit in Hong Kong on Wednesday.
Morgan Stanley CEO James Gorman said his gut feeling was that central banks would manage to curb price rises but investors would need to get used to higher inflation -- of around 4 percent versus 1-2 percent before "this crisis".
Stocks under F&O ban on NSE
The NSE has added LIC Housing Finance and retained Punjab National Bank under its F&O ban list for November 3. 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