Stock Market Today: Top 10 things to know before the market opens today

Stock Market News: “Trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 21 points on Monday despite sustained selling by FPIs and on the back of upbeat cues from the US markets and positive trading in Asian markets”

The market is expected to open in the green today as trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 21 points.

The BSE Sensex rallied 303 points to 60,261, while the Nifty50 climbed nearly 100 points to 17,957 and formed a bullish candle on the daily charts at the close last Friday. On the weekly basis, there was a long-legged Doji pattern on the weekly scale and the index registered half-a-percent gains.

As per the pivot charts, we have the key support level for the Nifty at 17,824, followed by 17,771, and 17,685. If the index moves up, the key resistance levels to watch out for are 17,996, followed by 18,049 and 18,135.

Stay tuned to to find out what happens in the currency and equity markets today.

US Markets

The S&P 500 and Nasdaq finished at their highest levels in a month on Friday, with shares of JPMorgan Chase and other banks rising following their quarterly results, which kicked off the earnings season.

The Dow Jones Industrial Average rose 112.64 points, or 0.33 percent, to 34,302.61, the S&P 500 gained 15.92 points, or 0.40 percent, to 3,999.09 and the Nasdaq Composite added 78.05 points, or 0.71 percent, to 11,079.16

Asian shares started cautiously on Monday as investors waited nervously to see if the Bank of Japan (BOJ) will defend its super-sized stimulus policy at a pivotal meeting this week, while a holiday in US markets made for thin trading.

Japan’s Nikkei slipped 0.9 percent in early trading. MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.2 percent, with hopes for a speedy Chinese reopening giving it a gain of 4.2 percent last week.

SGX Nifty

Trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 21 points. The Nifty futures were trading around 18,060 levels on the Singaporean exchange.

Nomura sees 75 basis point RBI rate cuts in 2023 as GDP slows

Slowing growth and easing price pressures may prompt India’s central bank to slash borrowing costs starting in August of this year, said Nomura Holdings Inc. in a note to clients on Friday. India’s growth is “likely to disappoint at 4.5 percent in 2023 due to global spillovers, prompting 75 basis point of rate cuts in second half of 2023,” Nomura economists led by Sonal Varma wrote.

Nomura is among the first to forecast such deep rate cuts in 2023, expecting the policy rate to ease to 5.75 percent by the end of the year in what it refers to as an “out-of-consensus” call. Goldman Sachs in its 2023 outlook for India had predicted 25 basis point rate cut in the October-December quarter.

FPIs withdraw Rs 15,000 crore from equities in two weeks of January

Foreign investors offloaded around Rs 15,000 crore worth of Indian equities in the first two weeks of January amid risks of Covid in some parts of the world and recession worries in the US. Foreign portfolio investors (FPIs) have been adopting a cautious stance towards Indian equity markets for the past few weeks.

According to the data with the depositories, FPIs have made a net withdrawal of Rs 15,068 crore from the Indian equity markets during January 2-13. Only two of the 10 trading days in January to date saw net purchases.

RBI Governor Shaktikanta Das says no need to revisit 4% inflation target

The Reserve Bank of India (RBI) Governor Shaktikanta Das on January 13 said it is too early to revisit the inflation target of 4 percent with 2 percent deviation on either side, in the current situation. “I don’t think there is any need for any change. I would not think the target needs to be revisited,” RBI’s Das said at an event in Mumbai. “It is too early to shift the goal post. The 4 percent target has a certain meaning.”

“There could be a moderation in inflation target numbers globally but it would be too soon to shift the target,” Das said.

Results on January 16

Federal Bank, Angel One, JSW Ispat Special Products, Tinplate Company of India, Kesoram Industries, Bank of Maharashtra, Shree Ganesh Remedies, and Trident Texofab will be in focus ahead of quarterly earnings on January 16.

FII and DII data

Foreign institutional investors (FII) have net sold shares worth Rs 2,422.39 crore, continuing selling for 16th session in a row, but domestic institutional investors (DII) have managed to offset the FII outflow, to major extent, by net buying shares worth Rs 1,953.40 crore on January 13, as per provisional data available on the NSE.

HDFC Bank reports strong double-digit growth in its Q3 net profit

HDFC Bank, the country’s largest private-sector lender, on January 14 reported strong double-digit growth in its net profit and a healthy jump in consolidated advances. The lender reported a 19.9 percent jump in its consolidated net profit for the quarter ended December 2022. Beating market estimates, it reported a net profit of Rs 12,698 crore, an increase of 18.5 percent over the quarter ended December 31, 2022

The bank’s December quarter net revenue grew by 18.3 percent to Rs 31,488 crore from Rs 26,627 crore last year.

Stocks under F&O ban on NSE

Indiabulls Housing Finance and GNFC will remain under the NSE F&O ban list for January 16. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.

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