Indian stocks upbeat as SGX Nifty rally on Fed move
By Vinu Lal
03:09, 16 December 2021
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.
“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 5paisa.com.
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