The market is expected to open in the green, with the SGX Nifty indicating a 46-point rise for the broader index in India.
The BSE Sensex down 770.31 points to 58,788.02, while the Nifty50 fell 219.80 points to 17,560.20, forming a bearish candle on the daily charts. The Nifty Midcap 100 and Smallcap 100 indices fell 0.96 percent and 0.34 percent, respectively, on Thursday, as did the broader markets.
The important support levels for the Nifty are 17,453.87 and 17,347.53, according to the pivot charts.
US Markets
- Meta Platforms plunged 5.1 percent, extending losses from last week’s bleak forecast, which prompted the social media company’s stock market value to plummet to new lows.
- The Dow Jones Industrial Average finished at 35,091.13 points, while the S&P 500 dropped 0.37 percent to 4,483.87. To 14,015.67, the Nasdaq Composite fell 0.58 percent.
Asian Markets
- Asian stocks were flat on Friday, following overnight losses on Wall Street, which saw the tech-heavy Nasdaq Composite drop over 4%.
- The Kospi index in South Korea increased by 0.75 percent. The Nikkei 225 index in Japan remained below the flat line, while the Topix index dipped 0.12%.
SGX Nifty
- With a rise of 46 points on the SGX Nifty, the wider index in India is off to a positive start.The Nifty futures were trading at around 17,564 levels on the Singaporean exchange.
Concerns over supplies are helping to push oil prices upward.
- Oil prices rose marginally on Thursday, extending the market’s upward trend, which is based on forecasts that supply will tighten further even after OPEC+ producers stick to their scheduled moderate output increases.
- Brent crude was trading at $89.87 a barrel, up 47 cents, or 0.5 percent. The price of US West Texas Intermediate crude increased by 60 cents, or 0.6 percent, to $88.76 a barrel.
In next week’s policy, the RBI may hike the reverse repo rate by 0.25 percent: Report
- To narrow the policy rate corridor, the Monetary Policy Committee may boost the reverse repo rate by up to 0.25 percent, according to a British brokerage. The reverse repo rate is where the RBI absorbs excess liquidity while the repo rate is where it lends.
- “Growth worries arising from the spread of the Omicron variant, combined with rather mild inflation out-turns, provide the RBI adequate leeway to maintain its growth-friendly monetary policies,” Barclays analysts said ahead of the resolution decision next week.
- Given its liquidity management activities, the RBI plans to raise the reverse repo rate by 0.20-0.25 percent.
BOE hikes rates to fight inflation
- On Thursday, the Bank of England hiked interest rates to 0.5 percent, but nearly half of its policymakers wanted a higher increase to combat rising price pressures that the British central bank feared would push inflation past 7%.
- Four of the nine members of the Monetary Policy Committee wanted to raise rates to 0.75 percent, the highest increase in borrowing costs since the Bank of England became operationally autonomous 25 years ago.
The huge drop in Meta’s stock price has caused a worldwide tech stocks to shake.
- After the social network giant issued a dismal forecast, blaming Apple’s privacy reforms and rising competition, shares in Facebook owner Meta plummeted 26 percent on Thursday, in what could be the largest single-day wipeout in market value for a US corporation.
- The huge plunge, which erased more than $200 billion from Meta’s market capitalization, spread to the broader technology industry, dragging the Nasdaq lower.
As the Omicron wave subsides, weekly jobless claims in the United States continue to fall.
- Last week, as COVID-19 infections reduced, the number of Americans submitting new unemployment claims declined more than predicted, indicating that the expected dip in job creation in January was likely only temporary.
- Reuters polled economists, who predicted 245,000 applications for the most recent week. Ohio, Kentucky, and Illinois saw sharp falls in applications, which were countered by significant increases in Michigan, California, Indiana, and Pennsylvania.
Results today
- Tata Steel, Shree Cement, Bank of India, InterGlobe Aviation, One 97 Communications, Siemens, Aditya Birla Fashions, Alkem Laboratories, Astral, Birla Corporation, CMS Info Systems, City Union Bank, Devyani International, Godrej Agrovet, Jubilant Pharma, Mahindra Lifespace Developers, Minda Corporation, Monte Carlo Fashions, REC, Sun Pharma Advanced Research Company, Thermax, Vadilal Industries.
FII and DII data
- According to provisional data available on the NSE, foreign institutional investors (FIIs) net sold shares worth Rs 1,597.54 crore on February 3, while domestic institutional investors (DIIs) net offloaded shares worth Rs 370.58 crore.