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The benchmark Sensex and Nifty indices are likely to open on a positive note on February 22 as trends in the GIFT Nifty indicate a higher start for the broader index with a gain of 83.50 points.
The domestic benchmark indices snapped their six-day winning run on February 21 as traders booked profits. IT and oil and gas stocks were the biggest drags on the indices.
The 30-share flagship Sensex settled 434.31 points, or 0.59 percent, lower at 72,623.09 and Nifty dropped 141.90 points, or 0.64 percent, to settle at 22,055.05.
The pivot point calculator indicates that the Nifty is likely to take immediate support at 22,005, followed by 21,945 and 21,849 levels, while on the higher side it may see immediate resistance at 22,197 followed by 22,256 and 22,352 levels.
Stay tuned to Moneycontrol to find out what happens in the 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.
GIFT Nifty
Trends in the GIFT Nifty indicate a strong start for the broader index in India, with a gain of 83.50 points or 0.38 percent. The Nifty futures were trading around the 22,131.50 level.
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US Markets
The S&P 500 and Dow Jones industrials eked out small gains on Wednesday, while the Nasdaq closed lower for a third straight session as investors awaited the release of Nvidia’s earnings that could determine near-term momentum for equities.
The S&P 500 climbed 0.13 percent to end the session at 4,981.80 points. The Nasdaq declined 0.32 percent to 15,580.87 points, while the Dow Jones Industrial Average rose 0.13 percent to 38,612.24 points.
Japan’s February factory activity extends declines as conditions worsen: PMI
Japan’s factory activity extended declines and service sector growth eased in February, surveys showed on Thursday, suggesting business conditions were worsening as the economy struggles to emerge from recession.
The flash au Jibun Bank Japan manufacturing purchasing managers’ index (PMI) fell to 47.2 in February from 48.0 in January.
The headline index has remained below the 50.0 threshold that demarcates growth from contraction for nine straight months.
Asian Markets
Japan’s Nikkei advanced towards record highs on Thursday with investors shrugging off dismal business activity data from the country, while other Asia-Pacific markets traded mixed.
Nikkei 225 was up 1.7 percent as investors assessed Japan’s Jibun Bank flash purchasing managers’ index reading for February that showed business activity contracted yet again.
India to be world’s third largest economy by 2027 with GDP at $5 trillion: Jefferies
Global brokerage Jefferies on February 21 said India will be the third largest economy by 2027 thanks to consistent GDP growth rate, supportive geopolitics, surging market cap, continued reforms and strong corporate culture.
“Over the last 10 years, India’s GDP has grown by 7 percent CAGR in USD terms to $3.6 trillion – jumping from the eighth largest to the fifth largest economy. Over the next 4 years, India’s GDP will likely touch $5 trillion making it the third largest economy by 2027, overtaking Japan and Germany, being the fastest growing large economy with the tailwinds of demographics (consistent labour supply), improving institutional strength and improvement in Governance,” wrote Mahesh Nandurkar, India Equity analyst at Jefferies.
India has a consistent history of growing at 10-12 percent in USD terms over the last 10 and 20 years. India is also now the fifth largest equity market in the world and the market cap will likely touch $10 trillion by 2030, said Jefferies.
Promoter Lunolux to offload 12% stake in Eureka Forbes via block deal: Sources
Lunolux Ltd, the promoter entity of Eureka Forbes, is set to offload 12 percent in the home appliances company via block deals, CNBC Awaaz reported on February 21, citing sources.
The promoter firm will be selling around 2.3 crore shares, the report said, adding that the floor price has been set at Rs 494.75 per share. This takes the overall deal size to Rs 1,150 crore.
The shares would be offloaded at a maximum discount of 3 percent, the persons privy to the development told the news channel.
Dollar edges down as Fed meeting minutes meet expectations
The dollar index edged lower on Wednesday after minutes from the Federal Reserve’s January meeting came in largely as expected and showed that the bulk of policymakers were concerned about the risks of cutting interest rates too soon.
The dollar index was last down 0.04 percent on the day at 104.00, after reaching 103.79 on Tuesday, the lowest since February 2.
The euro gained 0.1 percent to $1.0815. The greenback rose 0.13 percent to 150.19 yen .
Oil rises 1% on signs of tightening supplies
Oil prices rose 1 percent on Wednesday as geopolitical tensions raged on in the Middle East and traders assessed signs of near-term supply tightness.
US West Texas Intermediate crude futures (WTI) rose 87 cents, or 1.1 percent, to settle at $77.91 a barrel, while Brent crude rose 69 cents, or 0.8 percent, to $83.03 a barrel.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 284.66 crore, while domestic institutional investors (DIIs) sold Rs 411.57 crore worth of stocks on February 21, provisional data from the NSE showed.
Stocks under F&O ban on NSE
The NSE has added Ashok Leyland, Piramal Enterprises, and PVR INOX to the F&O ban list for February 22, while retaining Balrampur Chini Mills, Bandhan Bank, Biocon, Canara Bank, GMR Airports Infrastructure, GNFC, Hindustan Copper, India Cements, Indus Towers, National Aluminium Company, RBL Bank, and Zee Entertainment Enterprises to the said list. SAIL was removed from the said list.
With inputs from Reuters and other agencies
