SGX Nifty down 150 points; here’s what changed for market while you were sleeping

STATE OF THE MARKETS


SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 154 points, or 0.80 per cent, lower at 17,178, signaling that Dalal Street was headed for a negative start on Monday.

• Tech View: The short-term moving average for the Nifty50 is at 17,315. The index bounced back after taking support around 50-DMA to finally close 302 points lower at 17,327. It hit an intraday low of 17,291. The Nifty50 formed a long bearish candle on the daily charts. The Supertrend indicator also triggered a sell on Friday.
• India VIX: The fear gauge spiked wildly more than 9 per cent to 20.49 on Friday over its close at 18.72 on Thursday.

Asian stocks tumble at open
Major Asian stocks stocks opened with sharp cuts Monday after a long weekend that saw global selloffs, with investors expected to stay “risk-off” for some time. MSCI’s index of Asia-Pacific shares outside Japan was trading 0.96 per cent lower.

• Japan’s Nikkei tumbled 2.18%
• Australia’s ASX 200 tanked 1.44%
• New Zealand’s DJ gained 0.32%
• South Korea’s Kospi plunged 2.48%
• China’s Shanghai retreated 0.29%
• Hong Kong’s Hang Seng added 0.13%

US stocks slump sharply
Wall Street’s main indexes slumped to close well down on Friday, as rattled investors continued repositioning themselves to reflect fears the US Federal Reserve’s hawkish rate policy to curb inflation will push the American economy into recession.

• Dow Jones tanked 1.62% to 29,590.41
• S&P 500 plunged 1.72% to 3,693.23
• Nasdaq tumbled 1.80% at 10,867.93

Sterling plunges to all-time low
Sterling tumbled to a record low on Monday as traders scampered for the exits on speculation the new government’s economic plan will stretch its finances to the limit. The British pound’s searing fall helped the US dollar index to a new two-decade peak.

• Dollar index jumped up to 114
• Euro edged lower to $0.9528
• Pound slipped to 37 year low of $1.0327
• Yen was struggling at 143.78 per dollar
• Yuan exchanged hands at 7.1482 against the greenback

Oil prices climb
Oil prices rose modestly in early trade on Monday after sliding to eight-month lows last week weighed down by a surging US dollar and fears sharp interest rate hikes globally would spark a recession and hit fuel demand.

Brent crude futures were up 17 cents, or 0.2 per cent, at $86.32 a barrel at 0116 GMT, while US West Texas Intermediate (WTI) crude futures were up 21 cents, or 0.3 per cent, at $78.95 a barrel.

FIIs sell shares worth Rs 2,900 cr
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 2899.68 crore, data available with NSE suggested. However, data suggests that DIIs turned net buyers to the tune of Rs 299.1 crore. FPIs have bought equity to the tune of Rs 8,638 crore during September 1-23.

Stocks in F&O ban today
Six stocks –

, Zee Entertainments, , , and – are under the F&O ban for Monday, September 26. 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.

Harsha Engineers listing
Harsha Engineers International, the largest manufacturer of precision bearing cages, is scheduled to make its Dalal Street debut on Monday as the company raised Rs 755 crore via its initial stake sale by selling shares in the range of Rs 314-330 crore between September 14-16. However, the company was commanding a premium of Rs 160-170 in the grey market.

Forex reserves dropped to $545.65 bn
The country’s forex kitty continued its southward journey, with the overall reserves declining by $5.219 billion to $545.652 billion for the week ended September 16, the RBI said.

The reserves, which have been dipping as the central bank deploys the kitty to defend the rupee amid pressure caused majorly by global developments, had declined by $2.23 billion to $550.87 billion in the previous week.

MONEY MARKETS

Rupee: The rupee slumped 30 paise to close at a fresh lifetime low of 81.09 against the US dollar on Friday, weighed down by the strong American currency overseas and risk-off sentiment among investors.

10-year bonds: India 10-year bond spiked wildly 1.11 per cent to 7.29 after trading in 7.35 – 7.40 range on Friday.

Call rates: The overnight call money rate weighted average stood at 5.51 per cent on Friday, according to RBI data. It moved in a range of 3.80-5.80 per cent.