Trends on SGX Nifty indicate a negative opening for stock market indices

Trends on SGX Nifty indicate a negative opening for the broader index in India. Indian markets could open flat in line with rangebound muted Asian markets today and despite sharply lower US markets on Thursday, said Deepak Jasani, Head-Retail Research, HDFC Securities.

Nifty kept on vacillating near the previous session’s close throughout the day on February 17. Many attempts were made by the bulls to take it higher past yesterday’s close into positive territory, but all were futile and markets eventually closed in the red. At close Nifty was trading at 17304.6, 0.10 percent or 17.6 points lower.

Outcome of state elections and fears of interest rate hikes in India and abroad continue to plague the sentiments. 17491-17554 could continue to be a resistance for the Nifty while 17214 could be the support.

Asian markets slip

Asian markets mostly slipped on Friday and gold stood at an eight-month high after an exchange of fire in eastern Ukraine and renewed US warnings of an imminent Russian invasion had investors looking for safety ahead of the weekend, Reuters said. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3 percent in early trade. Japan's Nikkei fell 1.4 percent, Korean shares and Australian shares each fell 1 percent.

US stocks close lower

US stocks ended sharply lower Thursday, as investors dealt with renewed fears of a Russian invasion of Ukraine as the US and its allies accused Moscow of continuing to build up troop levels.

On Wall Street overnight the Dow Jones' 1.8 percent fall was its worst session of the year, the S&P 500 fell 2.1 percent and the Nasdaq dropped 2.9 percent. Gold shot to an eight-month high of $1,900 an ounce and held its gains. "The market will be on high alert over the possibility of a Russian invasion next week once the Beijing Olympics are over," analysts at ANZ Bank said in a note.

The stock markets continue to be driven by Ukraine-Russia headlines, with NATO accusing Moscow of misleading the world over troop withdrawals, saying that country had instead moved in about 7,000 additional soldiers, though Russia still claimed it was withdrawing troops.

Treasury notes drop 7.5 bps

Investors hastened a move late in the session toward defensive sectors and safe havens such as US bonds and gold as geopolitical tensions between Washington and Russia over Ukraine flared. Yields on the U.S. 10-year Treasury note dropped 7.5 basis points to 1.970 percent. Gold prices rose above $1,900 for the first time since June.

US weekly jobless claims up

The number of Americans filing new claims for jobless benefits unexpectedly rose last week, but remained below pre-pandemic levels as labor market conditions continue to tighten.

The first increase in a month reported by the Labor Department on Thursday did not change economists' expectations for another month of solid employment gains in February, Reuters said. There is an acute shortage of workers, which has seen employers boosting wages and offering other incentives to retain their workforce as well as attract labor. Economists blamed the rise in claims on week-to-week volatility in the data and harsh weather in some parts of the country.

Dollar declines to a new two-week low

The dollar slipped to a new two-week low of 114.78 yen in early Asia trade, and is down 0.5 percent so far this week. The dollar index fell 0.007 percent as the yen strengthened 0.48 percent at 114.91 per dollar. The euro was down 0.11 percent to $1.1361.

Bitcoin fell 8.2 percent to $40,470.33 as risk appetite fell.

Gold prices soar; oil prices fall

Gold prices rose above $1,900 for the first time since June. US gold futures settled 1.6 percent higher at $1,902 an ounce. Oil prices fell more than 2 percent. US crude futures fell $1.90 to settle at $91.76 a barrel, and Brent settled down $1.84 to $92.97.

Japan reports fifth consecutive month of inflation

On Friday, Japan reported a fifth straight month of inflation, with energy prices posting their biggest annual rise in 41 years.

F&O ban

Two stocks – Escorts, and Indiabulls Housing Finance – are under the F&O ban on NSE today.

(With inputs from Reuters)

Published on: Friday, February 18, 2022, 08:32 AM IST