Markets are expected to open in the red as trends in SGX Nifty indicate a negative opening for the broader indices in India on Wednesday.
The market extended gains for the second straight session but saw some profit-booking at higher levels, which led to a loss of nearly 90 points on the Nifty 50 from the day’s high of 17,800, forming a shooting star pattern on the daily chart. On 6 March.
This is generally a bearish reversal pattern but needs confirmation in the coming sessions. The Nifty 50 jumped 117 points to 17,712, while the BSE Sensex closed 415 points higher at 60,224 after shedding 270 points from the day’s high.
As per Pivot charts, Nifty has support at 17,679, followed by 17,649 and 17,600. If the index moves up, the key resistance levels to watch are 17,777, followed by 17,807 and 17,856.
Stay tuned with Moneycontrol to know what happens in currency and equity markets today. We have put together a list of important headlines across news platforms that may impact Indian as well as international markets:
US market
US stock indexes closed sharply lower on Tuesday after Federal Reserve Chairman Jerome Powell told Congress that the central bank will need to hike interest rates more than ever before as it tries to rein in high inflation.
The Dow Jones Industrial Average fell 574.98 points, or 1.72 percent, to 32,856.46; The S&P 500 closed down 62.05 points, or 1.53 percent, at 3,986.37; And the Nasdaq Composite fell 145.40 points, or 1.25 percent, to 11,530.33.
Asian market
Asia-Pacific shares tumbled on Wednesday after Federal Reserve Chairman Jerome Powell weighed in on concerns a potentially big hike at the next policy meeting could require interest rates to be higher than the central bank expected.
In Australia, the S&P/ASX 200 was down 0.82 percent. South Korea’s Kospi lost 1.18 percent in the first hour of trading. Japan’s Nikkei 225 dropped 0.13 percent and Topix was trading partially below the flatline.
sgx nifty
SGX Nifty trends indicate a negative opening for the broader indices in India. Nifty futures were trading at a level of 17,736 on the Singapore Exchange near 17,776 on March 6.
Fed needs to raise rates higher and probably faster: Fed Powell
Fed President Jerome Powell MLA on Tuesday.
“The latest economic data came in stronger than expected, suggesting that the final level of interest rates is more likely than previously thought,” Powell said in prepared remarks for a hearing before the Senate Banking Committee.
“If the totality of the data indicates that more rapid tightening is warranted, we stand ready to increase the pace of rate hikes,” Powell said.
The Fed will hold its next policy meeting March 21-22, with the release of the government’s monthly jobs report this Friday and an inflation report next week now key in policymakers’ decision on whether to slip behind the inflation curve again. have been, or may, stick to the more restrained policy formulated at their last meeting.
Oil falls $3/bbl as investors brace for a sharp rise in US rates
Oil prices fell $3 a barrel on Tuesday after comments from US Federal Reserve Chairman Jerome Powell fueled rate hike fears, strengthened the dollar and top crude importer China released weak data.
Brent crude futures fell $2.89, or 3.4 percent, to settle at $83.29 a barrel, while US West Texas Intermediate crude futures fell $2.88, or 3.6 percent, to $77.58 a barrel.
Dollar jumps on Hawkish Powell’s testimony
The dollar edged up against a basket of currencies on Tuesday after Federal Reserve Chairman Jerome Powell said the US central bank would stay the course until the job was done, adding that the final level of interest rates would be higher than before. is likely to be higher.
The dollar index was up 0.91 per cent at 105.2 on the previous day. The euro fell 0.84 percent to $1.0593. The greenback rose 0.68 percent to ¥136.85.
FII and DII data
Provisional data from the National Stock Exchange showed foreign institutional investors (FIIs) bought shares worth Rs 721.37 crore, while domestic institutional investors (DIIs) bought shares worth Rs 757.23 crore.
The Fed’s Powell faces long-term losses if the US debt ceiling is not raised
Federal Reserve Chairman Jerome Powell said on Tuesday that the US risks long-term damage if Congress does not raise the national debt limit.
“Congress really needs to raise the debt ceiling … If we fail to do so, I think the consequences are hard to predict, but they could be extraordinarily adverse and cause long-term damage.” Can,” Powell said during an appearance before the Senate Banking Committee as part of his semi-annual testimony on the economy and monetary policy.
ICRA upgrades outlook on Indian thermal power sector to ‘stable’ from ‘negative’
Rating agency ICRA on March 6 said India’s thermal plant load factor (PLF) is set to increase from 58.9 per cent in FY2022 to 64 per cent in FY2023, driven by a strong recovery in power demand in the country. The agency has now revised its approach. To upgrade the country’s thermal power sector from ‘negative’ to ‘stable’ even as the power distribution segment retained the ‘negative’ rating.
“The all-India thermal PLF level is expected to improve from 58.9 per cent in FY2022 to 64.0 per cent in FY2023 and 65.5 per cent in FY2024, owing to healthy demand growth and limited thermal capacity addition. Full-year demand growth is estimated at 9.5-10 per cent for FY23; which is likely to moderate in FY2024, though healthy at 5.5-6.0 per cent,” said Vikram V, vice-president and sector head of corporate ratings at ICRA.
Fed’s Powell admits lower corporate profits could help curb inflation
Federal Reserve Chairman Jerome Powell made his most comprehensive comments yet on the role of corporate profits in reducing inflation on Tuesday, telling US lawmakers that inflation is likely to decline and workers’ wages will continue to rise if companies and their The shareholder took less for himself.
“If corporate profits were to fall from the extremely high levels seen recently, would it be possible to maintain “increased workers’ benefits” despite reducing inflation to the target of 2%?” Democratic Senator Chris Van Hollen asked Powell during the Fed chief’s semi-annual testimony before the US Senate Banking Committee.
With inputs from Reuters and other agencies