From Wall Street update to US Fed rate hike, 10 things to know before market opens today

The Indian benchmark indices Nifty50 and Sensex are expected to open in the red on Thursday tracking weak global cues after the US Fed announced another rate hike of 25 basis points.

Besides, the Singapore Exchange (SGX) Nifty — an early indicator of the Nifty 50 index – is down by 0.3 per cent in the morning session today.

On Wednesday, the 30-share BSE Sensex declined 161.41 points or 0.26 per cent to settle at 61,193.30 and the NSE Nifty fell 57.80 points or 0.32 per cent to end at 18,089.85. 

“Some consolidation can’t be ruled out in the index, but the tone is likely to remain positive till Nifty manages to hold 17,850 levels. We thus reiterate our view to focus on stock selection,” Ajit Mishra, VP - Technical Research, Religare Broking said in his note.

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 ended lower on Wednesday, reversing gains after comments by Federal Reserve Chair Jerome Powell left investors wondering what the U.S. central bank's next move would be with interest rate hikes.

The Dow Jones Industrial Average (.DJI) fell 270.29 points, or 0.8%, to 33,414.24, the S&P 500 (.SPX) lost 28.83 points, or 0.70%, to 4,090.75 and the Nasdaq Composite (.IXIC) dropped 55.18 points, or 0.46%, to 12,025.33.

Asian Markets:

Most Asian stocks were mixed tracking the negative sentiment from US markets during the early morning session on Thursday. Hong Kong’s Hang Seng was up over 0.4 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 75 points or 0.42 per cent at 18,085 at this hour on Wednesday, suggesting a weak start ahead in the Indian share market today. It opened at 18,155 and touched the day’s high at 18,175.5 levels.

Rupee rises 7 paise vs $

The rupee consolidated in a narrow range and settled for the day higher by 7 paise at 81.80 against the US dollar on Wednesday, tracking the weakness of the American currency in the overseas market.

Forex traders said significant foreign fund inflows and crude oil prices below USD 75 a barrel also supported the local unit.

US dollar index dips

The dollar fell on Wednesday after the Federal Reserve raised interest rates by a quarter of a percentage point and signaled it may pause further increases.

The dollar index was last down 0.42% on the day at 101.42, after hitting 101.05, the lowest since April 26. The euro gained 0.46% at $1.1047 after reaching $1.1093. It is holding just below a 13-month high of $1.1096 reached last week.

Crude oil declines by 4%

Crude oil prices fell 4% on Wednesday, extending steep losses from the previous session after the U.S. Federal Reserve raised interest rates and as investors fretted about the economy.

Brent futures settled $2.99 lower, or 4%, to $72.33 a barrel, the global benchmark's lowest close since December 2021. Brent hit a session low of $71.70 a barrel, its lowest since March 20.

US Fed announces 25 bps rate hike

The U.S. central bank raised its benchmark overnight interest rate by a quarter of a percentage point to the 5.00%-5.25% range, as expected by financial markets, but in doing so dropped from its policy statement language saying that it "anticipates" further rate increases would be needed.

Q4 results update

Prominent companies such as Titan, Tata Chemicals and MRF among others announced their Q4 earnings along with some broader market firms on Wednesday.

The earnings momentum is expected to continue on Thursday as auto major Hero MotoCorp, TVS Motor and FMCG giant Dabur India along with others are scheduled to release their fourth-quarter earnings of the previous fiscal today.

Go First owner has no plans to exit airline

India's Wadia Group, the owner of cash-strapped Go Airlines (India) Ltd, is completely committed to the company, and has no plans to exit it, the airline's chief executive said on Wednesday.

The news came a day after the airline, recently rebranded as Go First, filed for bankruptcy, blaming "faulty" Pratt & Whitney (P&W) engines for the grounding of about half its fleet.

FII & DII Data:

Foreign portfolio investors (FPIs) remained net buyers for Rs 1,338.00 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net sellers to the tune of Rs 583.99 crore on Thursday, provisional data showed on the NSE.

(With inputs from PTI, Reuters and other agencies)