Domestic equities may see a positive opening in Monday’s trade amid optimism over easing of Covid restrictions in China. Asian markets were trading broadly higher in early trade while the dollar was trading marginally lower. The date on which the shares of LTIMindustrie will be listed as the merged entity. Here’s what you need to know before the opening bell:
On Friday, the Nifty fell below the 18,900 level, registering its first decline in nine sessions. The 50-Pack Index negated its higher high-low and formed a bearish candle on the daily chart. On the weekly scale, the index formed a bullish candle but with a longer wick, suggesting selling at higher levels.
SGX Nifty is showing signs of positive opening
Nifty futures on the Singapore Exchange settled 47.50 points, or 0.25 per cent, higher at 18,872, indicating a positive start for the domestic market on Monday.
Asian shares rise, dollar falls
Asian shares gained on Monday morning amid easing of COVID-related restrictions in China. Japan’s Nikkei rose 0.07 percent, China’s Shanghai Composite 0.81 percent while Hong Kong’s Hang Seng rose 2.70 percent. South Korea’s Kospi remained flat. The dollar index, which has an inverse correlation with equities, was trading 0.24 per cent lower at 104.19.
US stocks closed lower
US stocks closed slightly lower on Friday, although major indices pared their worst levels of the day as the November payrolls report fueled hopes that the Federal Reserve would maintain its path of interest rate hikes to combat inflation. . The Dow Jones rose 34.87 points, or 0.10 percent, to 34,429.88. The S&P 500 index closed at 4,071.70, down 4.87 points, or 0.12 percent. The Nasdaq Composite fell 20.95 points, or 0.18 percent, to 11,461.50.
Oil rises after OPEC+ maintains production target
Oil prices edged higher in early trade on Monday after OPEC+ countries reaffirmed their oil production targets ahead of EU sanctions and price caps on Russian crude, Reuters reported. At the same time, more Chinese cities eased Covid restrictions over the weekend, in a positive sign for fuel demand. Brent crude futures climbed 39 cents, or 0.5 percent, to $85.96 a barrel, while US WTI crude futures rose 37 cents, or 0.5 percent, to $80.35 a barrel.
corporate action today
On Monday, the shares of LTIMindustrie will be listed as a merged entity. Shares of Panchsheel Organics will go ex-dividend today. The boards of Alpha Transformers and Gujarat Toolroom will meet today to consider proposals for a preferential issue of shares. Also, the board of Marg Techno Projects will consider the proposal for stock split. Meanwhile, the Sukhjit Starch & Chemicals board will consider an interim dividend today.
Stock in F&O restrictions
In the F&O segment, shares of Delta Corp, Indiabulls Housing and Punjab National Bank were restricted today. Derivative contracts in a security are prohibited when it exceeds 95 percent of the market-wide position limit (MWPL). No new position can be created in the derivative contracts of the said security. This restriction is lifted when the open interest in MWPL’s stock on the exchanges falls below 80 per cent.
DII bought shares worth Rs 712 crore
Provisional data available with NSE showed that FPIs were net buyers of domestic stocks worth Rs 214.76 crore on Friday. Domestic Institutional Investors (DIIs) were buyers of equity worth Rs 712.34 crore.
Rupee lost 7 paise against dollar
The rupee depreciated 7 paise to close at 81.33 against the US dollar on Friday, as support for a weaker dollar was negated by a weak domestic markets and rise in crude oil prices. Forex dealers said outflow of foreign funds also affected investor sentiment. At the interbank forex market, the local unit opened at 81.11 but pared gains and settled at 81.33, down 7 paise from its previous close.
Read also: Sensex, Nifty: Key factors that may affect Dalal Street this week
Read also: Profit booking in Nifty after 8 days of rally; Analysts say Rs 18,900 is a major hurdle