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Shares may correct on negative global cues

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Capital Market
Last Updated : Mar 08 2023 | 9:04 AM IST

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall128 points at opening today.

Global Markets:

The US Dow Jones index futures were up 20 points, indicating a positive opening in the US stocks today.

Asian stock markets were trading lower on Wednesday, after Federal Reserve Chairman Jerome Powell on Tuesday cautioned that interest rates may need to be higher than expected.

Japan's seasonally adjusted current account balance rose to 216.3 billion yen ($1.57 billion) in January, government data showed on Wednesday. The surplus in balance saw a sharp drop from December's balance of 1.18 trillion yen and November's balance of 1.92 trillion yen.

China on Tuesday saw exports fall by 6.8% in February in U.S. dollar terms and imports also declined 10.2%.

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Overnight in the US, major stock indexes declined following Fed Chair Powell cautioning lawmakers that the central bank's terminal rate will likely be higher than previously anticipated due to stubbornly high economic data in recent weeks. Powell was on Capitol Hill Tuesday for the first part of his two-day semiannual monetary policy testimony before Congress.

The Dow Jones closed nearly 575 points lower and turned negative for 2023. The S&P 500 slid 1.53% to close below the key 4,000 threshold, and the Nasdaq Composite lost 1.25%. The sharp decline for stocks was accompanied by a spike in bond yields, with the rate on the 2-year Treasury surpassing 5% and touching the highest level since 2007.

Crude oil prices tumbled on fears of rate hike, weak Chinese data and strengthening dollar. Brent crude futures shed $2.89, or 3.4%, to settle at $83.29 a barrel.

Domestic Equity Market:

The key equity barometers advanced for the second straight session on Monday. Positive global cues supported buying. The barometer index, the S&P BSE Sensex, advanced 415.49 points or 0.69% to 60,224.46. The Nifty 50 index added 117.10 points or 0.67% to 17,711.45.

Foreign portfolio investors (FPIs) bought shares worth Rs 721.37 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 757.23 crore in the Indian equity market on 6 March 2023, provisional data showed.

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First Published: Mar 08 2023 | 8:06 AM IST

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