Fed Chair Jerome Powell’s promise of policy “pain” to contain inflation quashed hopes that the central bank would soften its rate hike stance to prevent an economic slowdown.
Powell’s speech comes at a time foreign investors are returning to Indian stocks after dumping them in the first half, as they look for higher returns amid expectations that major central banks will slow their rate hike cycle.
Rate sensitive realty index was down 2.8%, while the IT index slumped 4.4%.
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Nifty in the weekly time frame has breached the previous week’s which is the first sign of exhaustion. At present juncture one need to avoid trading aggressively amid global nervousness. US Fed Chairman Jerome Powell reiterated hawkish stance on interest rate hike denting nascent hopes for a more modest path of policy tightening. Thus, it would be sensible if one avoid fresh longs in index and book profits in trading bets. Considering the present situation, a bare minimum correction of 38.6% of the entire rally from 15,183 to 17,992 comes around 16900 followed by 50% correction at 16600. On the upside Nifty need to sustain above 17,350 with some authority for the bulls to strengthen their stance.
– Tirthankar Das, Technical & Derivative Analyst, Retail, Ashika Stock Broking
USDINR is on a strong wicket, with such a positive USD backdrop. A strong US Dollar Index, high US bond yields with an deeply inverted yield curve and weak equity markets all makes it challenging for FPI and carry trade flows in EMs. However, the speed of the up move will be closely regulated by RBI. RBI has twin objectives of not letting the Rupee become a weak outlier and also, they do not want the USDINR to become too volatile. This means they may continue to sell USD as the spot and forwards moves to a fresh all-time high. However, this may not alter the trajectory of the pair and the path of least resistance would remain upward. We expect a range of 79.70 and 80.50 over the next 1-2 weeks.
– Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
Sensex off day’s low, still down 900 points
IT stocks worst hit in market selloff…
Price as on 29 Aug, 2022 09:46 AM, Click on company names for their live prices.
Market View: Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
The sharp rise in the Dollar index above 109 and the 10-year bond yield spiking to 3.1 % are negative for capital flows to EMs like India. FPIs are unlikely to continue buying in India in this scenario.The ‘buy on dips’ texture of the market is unlikely to hold. Investors should not rush in to buy the dips now. Better wait for the dust to settle.
YES Bank, Tata Steel, Vodafone Idea, RBL Bank among most active stocks on NSE
Price as on 29 Aug, 2022 09:22 AM, Click on company names for their live prices.
OPENING BELL: Sensex crashes 1,300 pts on Powell’s hawkish pivot; Nifty cracks below 17,200; IT stocks tumble up to 5%
RUPEE OPENS AT RECORD LOW OF 80.0750 PER U.S. DOLLAR VS PREVIOUS CLOSE 79.8650
Pre-open session: Sensex plunges 1400 points, Nifty below 17,200
Indian rupee may plumb fresh low after hawkish Powell
The Indian rupee could slip to a record low against the dollar on Monday after Federal Reserve Chair Jerome Powell signalled that restrictive policy would be kept longer to bring down inflation. The rupee is tipped to open at 80.00-80.10 per U.S. dollar, compared with the previous session’s close of 79.8650. The currency had hit an all-time low of 80.0650 last month. The rupee will “most likely” see a record low, if not at open, then later during the session, a trader at a Mumbai-based bank said.
Dollar hits 20-year high as Fed flags rates higher for longer
The U.S dollar surged to a 20-year high against a basket of currencies on Monday after Federal Reserve Chair Jerome Powell signalled interest rates would be kept higher for longer to bring down soaring inflation. The dollar index scaled to a fresh two-decade peak of 109.4 in early Asia trade, with greenback strength pushing other major currencies to new lows and putting pressure on its emerging markets counterparts.
Asian stocks jilted as central banks promise tough love
Asian shares slid on Monday as the mounting risk of more aggressive rate hikes in the United States and Europe shoved bond yields higher and tested equity and earnings valuations.
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 362 points, or 2.05 per cent, lower at 17,297, signaling that Dalal Street was headed for a gap-down start on Monday.
Quarterly earnings today
Procter & Gamble Health, Sindhu Trade Links, Indosolar and Mackinnon Mackenzie & Company are among companies that will announce their quarterly earnings today.
Tech View: Nifty50 forms small bearish candle; resistance seen at 17,720-725 levels
Nifty50 on Friday settled higher but formed a small bearish candle on the daily chart. On the weekly chart, the index formed a bearish candle with a long lower wick. Analysts said that the index may face resistance near 17,720-725 level while they saw 17,400 to act as a strong support going ahead.
Oil mixed as OPEC supply cut prospect offsets demand fears
Oil prices were mixed on Monday as investors balanced expectations the OPEC will cut output to support prices against concerns sparked by Federal Reserve Chairman Jerome Powell saying the United States will face slow growth “for some time”.
Tokyo shares open lower after Fed pledge to hike rates
Tokyo stocks opened lower Monday after US Federal Reserve Chair Jerome Powell declared his commitment to rate hikes to fight inflation. The benchmark Nikkei 225 index tumbled 1.69 percent, or 484.75 points, to 28,156.63, while the broader Topix index slipped 1.62 percent, or 31.59 points, to 1,948.00.
Wall Street ends in a hole after Powell’s Wyoming speech
Wall Street ended Friday with all three benchmarks more than 3% lower, as Federal Reserve Chief Jerome Powell’s signal that the central bank would keep hiking rates to tame inflation nixed nascent hopes for a more modest path among some investors.
Rupee rises by 8 paise to 79.84 on weak dollar
The rupee appreciated by 8 paise to close at 79.84 against the US dollar on Friday, supported by a weak dollar in the overseas markets and a positive trend in domestic equities.
Sensex, Nifty on Friday
The 30-share Sensex advanced 59.15 points to end at 58,833.87. Its broader peer, Nifty50, ended the session comfortably above the 17,500 mark.