Dear Trader –
The Fed minutes, due
later in the day, and key labour market data, expected later this week, will
help assess if the optimism over potential rate cuts is justified.
The 30-share BSE
benchmark Sensex plunged 536 points or 0.75% to settle at 71,356. The broader
NSE Nifty fell 162 points or 0.74% to
end at 21,595.
Among the Sensex
stocks, JSW Steel and Tata Steel were the top laggards, falling over 3% each.
Infosys, Wipro, Tech Mahindra, TCS, and Nestle India also ended in the red. On
the other hand, IndusInd Bank, ITC, Bharti Airtel, SBI, and Axis Bank closed in
the green.
Adani Group stocks
closed up to 12% higher following a favourable verdict from the Supreme Court.
In the 10-pack group of stocks, Adani Energy Solutions was the top gainer,
rising nearly 12%, while Adani Total Gas closed with a 10% upper circuit. Adani
Power also closed with a 5% upper circuit.
On the sectoral front,
Nifty IT closed 2.5% lower ahead of the release of the Fed minutes. Nifty Metal
and Nifty Financial Services also closed 1.8% and 0.4% lower, respectively.
The market breadth was
skewed in the favour of the bulls. About 2,137 stocks gained, 1,706 declined,
and 102 remained unchanged on the BSE.
Global Markets – Global stock markets extended a New Year
slide on Wednesday as market optimism about early US interest rate cuts ebbed
and the latest escalation of hostilities in the Middle East weighed on
sentiment.
Europe’s STOXX 600 share index dipped 0.1% and
Asia Pacific shares outside Japan fell 1.3%. The tech-focused Nasdaq slid 1.6%
on Tuesday, dragged lower by a nearly 3% drop in Apple to a seven-week low
after Barclays downgraded its shares.
Fed minutes – The minutes of the Fed’s
December policy meeting are due later in the day and will offer clues on how
well-placed market expectations are about potential cuts in policy
rates.Investors are currently pricing in a near 75% chance of a Fed rate cut in
March, down from about 85% a week earlier.
Crude Oil – Brent crude oil futures were
0.4% lower at $75.59 a barrel as expectations of ample supply outweighed
concerns about disruptions to Red Sea shipping routes for now.
Rupee Vs Dollar – The Indian rupee closed
marginally higher on Wednesday, supported by dollar sales from foreign banks,
even as most of its Asian peers fell pressured by a recovery in the US dollar
index. The rupee ended at 83.2750 against the dollar, slightly higher compared
with its close at 83.3175 in the previous session. The dollar index last quoted
at 102.3 after having risen 0.8% overnight as market participants moderated
bets on interest rate cuts by the Federal Reserve. The 10-year US Treasury
yield rose to 3.98%.
Meanwhile,
Importantly, the
market was waiting for the Fed minutes for rate insights. As a rebound in the
US 10-year yield and an uptick in the dollar index indicate whether Fed may not
turn as dovish as expected.
The lack of fresh
triggers and concerns over valuation influenced investors to stay sidelined.
Nifty futures opened at 21729.90 points against the previous close
of 21756.75 and opened at a low of 21579.00 points. Nifty Future closed with an
average movement of 150.90 points and decline of around 161.75 and 21595.00 points…!!
At the start of intra-day trading December gold opened at Rs.63258
fell from a high of Rs.63345 points to a low of Rs.62751 with a decline of 456 points,a
trend of around Rs.62801 and December Silver opened at Rs.73971, fell from a
high of Rs.74126 points to a low of Rs.72930 with a decline of 1105 points, a
trend of around Rs.72990.
Technically,
the important key resistances are placed in October Nifty future are at 21595 levels,
which could offer for the market on the higher side. Sustainability above this
zone would signal opens the door for a directional up
move with immediate resistances seen at 21676 – 21808 levels. Immediate support
is placed at 21505 – 21404 levels.
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