From global cues to US Fed meeting, 10 things to know before market opens today

The Indian markets started the week on a positive note and gained nearly half a percent, in continuation to the trend.  Initially, firm global markets led an upbeat start, however, a mixed trend across the index majors capped the movement thereafter.

The 30-share BSE Sensex climbed 242.27 points or 0.40 per cent to settle at 61,354.71 and the NSE Nifty went up 82.65 points or 0.46 per cent to finish at 18,147.65. On the sectoral front, metal, energy and IT posted strong gains while defensive viz. pharma and FMCG traded dull.

“We may see some consolidation citing caution ahead of the outcome of the US Fed meet however the tone is likely to remain positive so maintain the “buy on dips” approach,” Ajit Mishra, VP - Technical Research, Religare Broking said in his note.

Sectors like energy, IT and metal are now trying to catch up with the other key sectors, which is further adding to the buoyancy. Participants should align their positions accordingly, he added. 

Stay tuned to Zeebiz.com to find out what could impact your trade today. We have collated a list of the top 10 news points which could impact markets, companies, or the economy:

Wall Street:

US stock markets fell more than 1% each on Tuesday as regional bank shares tumbled on renewed fears over the financial system and as investors tried to gauge how much longer the Federal Reserve may need to hike interest rates.

The Dow Jones Industrial Average (.DJI) fell 367.17 points, or 1.08%, to 33,684.53; the S&P 500 (.SPX) lost 48.29 points, or 1.16%, at 4,119.58; and the Nasdaq Composite (.IXIC) dropped 132.09 points, or 1.08%, to 12,080.51.

Asian Markets:

Most Asian stocks were in the deep red tracking the lower US markets during the early morning session on Wednesday. Hong Kong’s Hang Seng was down over 1 per cent, while South Korea’s Kospi was down 0.6 per cent today.

SGX Nifty:

Singapore Exchange (SGX) Nifty — an early indicator of the Nifty 50 index — was down 71 points or 0.39 per cent at 18,149.5 at this hour on Wednesday, suggesting a weak start ahead in the Indian share market today. It opened at 18,139.5 and touched the day’s high at 18,253.5 levels.

Rupee falls 5 paise vs $

The rupee consolidated in a narrow range and settled 5 paise lower at 81.87 against the American currency on Tuesday as investors preferred to stay on the sidelines ahead of the US Fed meeting outcome.

A strong dollar overseas against major rivals also impacted market sentiment, traders said.

US dollar index dips

The dollar fell Tuesday after data showed that U.S. job openings fell in March, a day before the Federal Reserve is expected to hike interest rates by an additional 25 basis points.

The dollar index fell 0.22% to 101.93 after earlier reaching 102.40, the highest since April 11. The euro rose 0.23% against the greenback to $1.1001, after earlier dipping to $1.0940, the lowest since April 21.

Crude oil prices slump

Oil prices sank about 5% to a five-week low on Tuesday on concerns about the economy as U.S. politicians discuss ways to avoid a debt default and investors prepare for more rate hikes this week.

Brent futures fell $3.99, or 5.0%, to settle at $75.32 a barrel, while West Texas Intermediate crude (WTI) fell $4.00, or 5.3%, to end at $71.66.

Gold prices steady

Gold prices held steady above the key $2,000 level on Wednesday, while investors strapped in for the U.S. Federal Reserve's interest rate-hike verdict due later in the day.

Spot gold held its ground at $2,015.25 per ounce by 0021 GMT. U.S. gold futures were flat at $2,023.70.

US Fed for another 25 bps rate hike

The U.S. Federal Reserve will deliver a final 25-basis-point interest rate increase in May and then hold rates steady for the rest of 2023, according to economists, which also showed a short and shallow recession this year was likely.

Worries about an economic downturn, which were also highlighted by the Fed at its March 21-22 policy meeting, and concerns about banking sector stress have encouraged markets to price in at least a 25-basis-point cut by the end of 2023.

Q4 results update

Large-cap companies such as Ambuja Cements and Tata Steel announced their Q4 earnings along with some broader market firms like Adani Gas, Spandana Spoorthy, Punjab Sindh Bank, UCO Bank and others on Tuesday.

The earnings momentum is expected to continue on Tuesday as Tata Group company Titan, ABB India, Cholamandalam Invest, Havells India, Godrej Properties, and Tata Chemicals among others are scheduled to release their fourth-quarter earnings of the previous fiscal today.

FII & DII Data:

Foreign portfolio investors (FPIs) remained net buyers for Rs 1,997.35 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net sellers to the tune of Rs 394.05 crore on Tuesday, provisional data showed on the NSE.

(With inputs from PTI, Reuters and other agencies)