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Indian stocks upbeat as SGX Nifty rally on Fed move

By Vinu Lal

03:09, 16 December 2021

3D. Finance, Stock Market, Stock Exchange.
Trends in SGX Nifty show a positive start for Indian indices – Photo: Shutterstock

Indian stock indices are heading for a cheerful Thursday morning if the SGX Nifty futures index is any indication. Asian markets were mostly trading up echoing trends in the Fed outcome boosted risk sentiments. 

SGX Nifty, trading on Singapore Stock Exchange that represents Indian stocks, opened smartly on Thursday morning and sustained its gains through the trading session and was trading up 0.71% before Indian markets opened.

The US Federal Reserve on Wednesday said that it would double the pace of scaling back bond purchases to $30bn a month, putting it on track to conclude the programme by March 2022 rather than mid-year as planned earlier, taking note of price rise.

Wall Street stocks, led by technology companies, rallied after the Fed’s decision to hike interest rates three times next year. Dow Jones Industrial Average rose 1.08%, S&P 500 gained 1.63% on Wednesday.


1.27 Price
+0.680% 1D Chg, %
Long position overnight fee -0.0047%
Short position overnight fee -0.0035%
Overnight fee time 22:00 (UTC)
Spread 0.00013


0.67 Price
+0.870% 1D Chg, %
Long position overnight fee -0.0071%
Short position overnight fee -0.0011%
Overnight fee time 22:00 (UTC)
Spread 0.00006


0.67 Price
+0.870% 1D Chg, %
Long position overnight fee -0.0071%
Short position overnight fee -0.0011%
Overnight fee time 22:00 (UTC)
Spread 0.00006


1.10 Price
+0.500% 1D Chg, %
Long position overnight fee -0.0080%
Short position overnight fee -0.0002%
Overnight fee time 22:00 (UTC)
Spread 0.00006

“Technically, we have already seen some correction from the swing high of 17600 and the index is now approaching the support end…If the market manages to show recovery, then we could see short covering which could lead the markets higher, ” said Ruchit Jain, trading strategist at discount broker

On currency movement, Sugandha Sachdeva, vice-president, commodity and currency research at Religare Broking said, “The Indian rupee has drifted towards a 16-month low, even breaching the key 76 mark amid a hawkish tilt from the US Fed and expectations of a faster wind-down of asset purchases, while the Omicron coronavirus virus scare has also hurt the risk appetite in the market.”

Things to note before trade

  • Indian manufacturer and supplier of active pharmaceutical ingredients Supriya Lifescience will open for public subscription today
  • Telecom operator Vodafone Idea targets a four-fold jump in annual capital expenditure to $2bn (INR152.6bn) 
  • Indian multinational Tata Steel’s long-term issuer rating was raised to 'AA+' from 'AA' by India Ratings
  • Drugmaker Glenmark is in talks to license a potential drug asset – ISB 830 – from its US-based clinical biotechnology subsidiary Ichnos Sciences
  • TVS Motor Company and BMW’s motorcycle brand BMW Motorrad announced the expansion of their long standing partnership to include joint development of new platforms and future technologies, including electric vehicles

Read More: The Fed doubled tapering pace as inflation rises 

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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