SGX Nifty indicates negative opening for Indian markets - March 04, 2021

The Indian stock market is expected to open in the red as the trends on SGX Nifty indicate a gap-down opening for the index in India with a 218 points loss.

The S&P BSE Sensex closed above 51,000 mark, rising 1,147.76 points, or 2.28 percent, to 51,444.65 on March 3 while the Nifty50 rallied 326.50 points, or 2.19 percent, to 15,245.60.

According to pivot charts, the key support levels for the Nifty are placed at 15,069.87, followed by 14,894.13. If the index moves up, the key resistance levels to watch out for will be 15,347.27 and 15,448.93.

Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:

US Markets

The Nasdaq ended sharply lower on Wednesday after investors sold high-flying technology shares and pivoted to sectors viewed as more likely to benefit from an economic recovery on the back of fiscal stimulus and vaccination programs.

The Dow Jones Industrial Average fell 0.39% to end at 31,270.09 points, while the S&P 500 lost 1.31% to 3,819.72. The Nasdaq Composite dropped 2.7% to 12,997.75.

Asian Markets

The Japanese yen hit a seven-month low on the dollar on Thursday as hopes that vaccine distribution and more government stimulus will drive the U.S. economy into a solid rebound lifted the greenback and benchmark Treasury yields.

But the creep up in benchmark yields may weigh on Asian stocks, as wary investors recall last week’s sell-off in government bonds that caused yields to spike, spooking equity markets and causing shares to tumble. By early Thursday, Australian shares had lost 1% and E-mini S&P futures slipped 0.25%.

SGX Nifty

Trends on SGX Nifty indicate a gap-down opening for the index in India with a 218 points loss. The Nifty futures were trading at 15,076 on the Singaporean Exchange around 07:30 hours IST.

Sebi asks bourses, clearing corps to put in place mechanism to prevent fraud

Sebi on Wednesday asked stock exchanges, clearing corporations and depositories to put in place code of conduct and institutional mechanism to prevent fraud or market abuse by them and their designated persons. Under this, managing director (MD) / chief executive officer (CEO) of MIIs will be obligated to frame code of conduct and put in place an institutional mechanism. Further, the board of directors needs to ensure compliance by MD /CEO in this regard.

In a circular, Sebi said that code of conduct and institutional mechanism for prevention of fraud or market abuse will be applicable to market infrastructure institutions (MIIs) — exchanges, clearing corporations and depositories–on lines of insider trading norms. Now, MIIs will have to formulate a code of conduct to regulate, monitor and report trading by their designated persons and immediate relative of designated persons towards achieving compliance with the PIT (Prohibition of Insider Trading) Regulations.

Oil gains as U.S. fuel stocks drop

Oil prices rose more than 2% on Wednesday, boosted by a huge drop in U.S. fuel inventories and expectations that OPEC+ producers might decide against increasing output when they meet this week.

Brent crude rose $1.37, or 2.2%, to settle at $64.07 a barrel. U.S. West Texas Intermediate (WTI) crude rose $1.53, or 2.6%, to settle at $61.28 a barrel.

Rising yields still ‘a world away’ from impacting sovereign ratings - S&P Global

The recent jump in global bond market borrowing costs is still a world away from impacting most countries’ credit ratings S&P Global has said.

The rise in benchmark U.S. Treasury yields above 1.6% last week and knock-on moves in Europe, Japan and elsewhere is making economists look again at the massive amounts of debt countries have taken on.

S&P estimates that governments will borrow another $12.6 trillion this year, which while 20% lower than the historic surge in 2020, will still be 50% higher than the pre-COVID average.

Dollar on the front foot as focus shifts to Powell

The dollar hit a seven-month high against the yen on Thursday as an orderly rise in U.S. Treasury yields lent support ahead of a speech by Federal Reserve Chairman Jerome Powell that may determine the trend for global bond markets and currencies.

Powell’s comments will be closely watched to see if he expresses concern about a recent volatile selloff in Treasuries and if there is any change in his assessment of the economy before the Fed’s next meeting ending March 17.

Bitcoin rises 5% to $50,942.58

Bitcoin rose 5% to $50,942.58 on Wednesday, adding $2,426.23 to its previous close. Bitcoin, the world’s biggest and best-known cryptocurrency, has risen 83.7% from the year’s low of $27,734 on January 4.

Bitcoin’s price soared this year as major firms, such as BNY Mellon, asset manager BlackRock Inc, credit card giant Mastercard Inc, backed cryptocurrencies, while those such as Tesla Inc Square Inc and MicroStrategy Inc invested in bitcoin.

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 2,088.7 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 392.91 crore in the Indian equity market on March 3, as per provisional data available on the NSE.

2 stocks under F&O ban on NSE

Indiabulls Housing Finance and SAIL are under the F&O ban for March 4. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.