Key Things To Know Before Markets Opens On Thursday

The Indian equity benchmarks are set to open a gap up opening as indicated by the Nifty Futures traded on Singapore Exchange amid strong cues from global markets. The SGX Nifty Futures also known as SGX Nifty Futures rose 1.53 per cent or 262 points to 17,268.

Here are key things to know about Thursday's market opening:

Asian Markets

Asian markets were trading on a strong note after US Fed increased interest rates by 25 basis points as expected. Japan's Nikkei advanced 3 per cent, Hong Kong's Hang Seng jumped 4.45 per cent and South Korea's KOSPI advanced 1.72 per cent.

US Markets

Stocks reversed an afternoon fade and closed broadly higher Wednesday after the Federal Reserve announced its first interest rate hike since 2018.

As Wall Street largely anticipated, the central bank announced it was increasing its key short-term rate by 0.25 percentage points. The Fed, which has kept its rate near zero since the pandemic recession struck two years ago, also signaled potentially up to seven rate hikes this year.

The S&P 500 rose 2.2 per cent, the Dow Jones Industrial Average gained 1.5 per cent and the Nasdaq composite climbed 3.8 per cent, its biggest gain since November 2020.

US Fed Meet Outcome

The Federal Reserve launched a high-risk effort Wednesday to tame the worst inflation since the early 1980s, raising its benchmark short-term interest rate and signaling up to six additional rate hikes this year.

The Fed’s quarter-point hike in its key rate, which it had pinned near zero since the pandemic recession struck two years ago, marks the start of its effort to curb the high inflation that followed the recovery from the recession. The rate hikes will eventually mean higher loan rates for many consumers and businesses.

The central bank, in a policy statement, along with quarterly projections and remarks by Chair Jerome Powell at a news conference, pointed to a somewhat more aggressive approach to rate hikes than many analysts had expected.

The projections showed that seven of the central bank’s 16 policymakers favor at least one half-point rate hike this year, suggesting that such a large increase “is a live possibility,” said Michael Feroli, an economist at JPMorgan Chase.

Russia-Ukraine War Update

Ukrainian President Volodymyr Zelenskyy invoked 9/11 during an urgent appeal Wednesday to the U.S. Congress for more weapons to stem the Russian assault. U.S. President Joe Biden announced an additional $800 million for Ukraine’s military and said Russian President Vladimir Putin is a “war criminal.”

In the encircled city of Mariupol, a Russian airstrike destroyed a theater where hundreds of people were sheltering. Many people were buried in the rubble, Ukraine’s foreign ministry said in a statement, though the number of casualties wasn’t clear.

Missiles and artillery slammed into high-rise apartment towers in Kyiv, setting buildings ablaze and sending smoke over the capital and its suburbs.

FII Flows

Foreign institutional investors turned buyers in Indian equity markets for the first time in around six months as they bought shares worth Rs 312 crore on Wednesday while domestic institutional investors bought shares worth Rs 772 crore.

Tata Steel, Indiabulls Housing Finance, Gufic Biosciences Amond Stocks In Focus

Tata Steel: The company has acquired a 90 per cent stake in Ceramat Private Limited through its step-down subsidiary Tata Steel Advanced Materials.

Gufic Biosciences: The company has incorporated a wholly-owned subsidiary Gufic UK Limited to expand its business in the United Kingdom.

BEML: The company’s board will meet on March 22, 2022, to consider and approve interim dividends for current financial year.

Indiabulls Housing Finance: The company’s board will meet on March 22, 2022 to consider and approve fund raising via bonds.

(With inputs from agencies)